Nothing has been more clear over the last year-plus than how fragile the supply chains are in critical markets, how just one kink can cause a domino effect with far-reaching impact.
Such is the case now with silicon metal, a key ingredient for the production of silicone rubber, along with other staples such as aluminum and photovoltaic wafers. It is a material where 70 percent of the world's supply comes from China, and a mere 5 percent from U.S.-based production.
The glitch in this supply chain came last year when China instituted a series of brownouts to compensate for environmental harm caused by coal mining and other emissions issues. The effect quickly made its way to the key users, causing prices to rise and allocations to become common, particularly in the silicone rubber market. Traditional lead times for specification-grade silicone sheet, sponge and foam rose from the traditional six weeks to more than six months in some cases.