**[Tungsten Supply Crisis Amid AI Boom: Two Japanese WF₆ Producers Halt Production, Supply Chain Risks Intensify]** BlockBeats News, August 24 — According to ZeroHedge citing Almonty Industries CEO Lewis Black, the global tungsten supply is facing a severe shortage. Demand for tungsten from AI, semiconductor, and defense industries continues to grow, while China's dominance in tungsten raw material supply further amplifies global supply chain risks. Earlier this year, the U.S. Strategic Reserve sought to procure tungsten from the market, but due to tight spot supply, rising prices, and concerns that large-scale government purchases might disrupt the market, the initiative ultimately did not proceed. Industry insiders note that Western countries currently have limited access to non-Chinese tungsten resources, with much of the available supply already locked in advance. The semiconductor industry is also facing significant supply risks. Tungsten hexafluoride (WF₆) is a critical material used in advanced memory chip manufacturing to form miniature tungsten interconnects. Japan's Kanto Denka and Central Glass, which together previously supplied about one-quarter of the global WF₆ market, ceased production on July 1 due to an inability to obtain the high-purity tungsten powder required for manufacturing. These raw materials primarily come from China, which plans to tighten tungsten-related exports starting in 2025. Currently, Samsung and SK Hynix are accelerating efforts to identify and certify new WF₆ suppliers, with market forecasts suggesting WF₆ prices could rise by 70% to 90% in the second half of the year. Meanwhile, a Chinese company has announced plans to add 1,000 tons of annual WF₆ production capacity. The tungsten supply shortage is also spreading to Japan, Europe, and the U.S. in the hard alloy and cutting tool industries. Western market prices for APT (ammonium paratungstate) remain above $3,000 per metric ton unit (mtu WO₃), and some companies are already experiencing raw material shortages. Industry experts believe that tungsten demand has low price elasticity in the short to medium term, meaning that even with price increases, downstream manufacturing sectors such as automotive and aerospace will struggle to reduce procurement. The report highlights that tungsten is not only used in defense and semiconductors but also in hard alloys, which account for approximately 60% of U.S. tungsten demand and about two-thirds of global tungsten demand. These alloys are used in industrial products such as cutting tools and drill bits. As AI, defense, and advanced manufacturing industries expand, the importance of the global tungsten supply chain is further increasing. [Original Link]