Rare Earth Shortage Threatens U.S. Aerospace and Semiconductor Industries

A growing shortage of rare earth elements is impacting suppliers to U.S. aerospace and semiconductor companies, according to industry insiders cited by Reuters. According to Jin10, two suppliers have already declined some customer orders due to the scarcity. The shortage primarily affects yttrium and scandium, lesser-known members of the 17-element rare earth family, which play crucial roles in defense technology, aerospace, and semiconductor sectors. Kevin Michaels, an aerospace supply chain expert, noted that while the yttrium shortage has not yet disrupted jet engine production, manufacturers remain concerned. Dylan Patel, founder and CEO of semiconductor research firm SemiAnalysis, warned that U.S. semiconductor manufacturers are running low on scandium, posing a risk to the production of next-generation 5G chips.