The price of germanium has surged by over 83% since the end of 2023, reaching 25,000 yuan/kg by June 18th. This significant price increase is primarily driven by the high demand for optical fibers in AI computing infrastructure. Germanium tetrachloride, a crucial component in optical fiber manufacturing, acts as a key additive to enhance core refractive index and improve transmission performance. Despite its small proportion in the cost of optical fiber preform raw materials, the stringent purity requirements and concentrated domestic supply of germanium, coupled with its non-substitutability, create a pronounced supply-demand imbalance. AI
IMPACT The surge in germanium prices highlights the critical role of specialized materials in scaling AI infrastructure, potentially impacting the cost and availability of advanced computing resources.
RANK_REASON Significant price increase of a key material driven by AI infrastructure demand. [lever_c_demoted from significant: ic=1 ai=0.7]
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