Changes in Silicon Prices

Falling Silicon Prices: Why Are They Going Down—and Will It Last?

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April 1, 2025

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For some time now—and against any expectations—worldwide silicon prices have been progressively decreasing. Several factors play into this, from oversupply to the constant development of new, alternative materials that replace silicon.

However, policy changes, potential tariffs, and new trade measures might alter supply chains and pricing dynamics in the near future. Here, we’ll explore why silicon prices have been decreasing lately—and whether or not this trend will continue.

Current Silicon Price Trends

According to Business Analytiq, the price of metal silicon in North America stood at $2.95 per kilogram in April 2025, reflecting a 2.3% decrease from the previous month. This downward trend aligns with global patterns, where silicon prices have been under pressure for several months.

Several elements have contributed to the recent price movements:

  • Increased production, particularly in regions like China, has led to higher inventories, exerting downward pressure on prices.
  • While there is ongoing demand in sectors such as automotive and solar energy, it hasn't been sufficient to offset the oversupply.
  • At the same time, key sectors like solar and electronics have shifted toward more effective materials like gallium arsenide, lowering the demand for silicon worldwide.

Will Silicon Prices Continue to Drop?

While silicon prices have been dropping lately, new import tariffs could increase costs in the semiconductor industry in the future.

In the most recent round of tariffs, semiconductors were initially exempt; however, this exemption might not last. Sector-specific tariffs on semiconductor products are anticipated in the upcoming months, which could raise prices for producers and, in turn, for consumers.

The issue is that only around 8% of semiconductors are made in the United States, meaning the country heavily depends on imports. If these imports are subject to tariffs, the higher costs will probably be passed on to customers, raising the cost of electronic devices.

Understand Changes in Silicon Prices

With the announcement of new tariffs on goods imported from several countries worldwide, consumers and businesses alike in the United States entered a state of worry. It's too early to say how sector-specific tariffs will impact silicon prices, but here at Wafer World, we’re attentive to any changes. If you want to stay up-to-date with the semiconductor market, reach out!

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