Yunnan Germanium Increases Production Amid Rising Demand in First Half of 2024

Yunnan Germanium

China's largest germanium producer, Yunnan Germanium, reported a significant rise in production during the first half of 2024. The company attributed this growth to increasing demand from the photovoltaic (PV) and semiconductor sectors, which rely heavily on germanium for critical applications.

Strong Growth in PV and Semiconductor Output

Between January and June, Yunnan Germanium produced 218,300 pieces of PV-grade germanium wafers, a 52% increase from the 143,900 pieces produced during the same period last year. While PV-grade output surged, the company saw a 6% drop in infrared-grade germanium products, which totaled 2.35 tonnes. Production of germanium tetrachloride, used in optical fiber materials, also decreased by 36% to 9.84 tonnes.

The company also experienced growth in other semiconductor products. Its gallium arsenide (GaAs) wafer production jumped 64% to 47,900 pieces, while output of indium phosphide more than doubled, reaching 33,900 pieces, up from 15,300 pieces a year earlier.

Increased Revenue Despite Mixed Results

Despite some declines in specific product lines, Yunnan Germanium's overall revenue grew by 23%, reaching 348 million yuan ($49 million) in the first half of 2024. This was largely due to the increased sales of raw-material-grade germanium, PV-grade germanium products, and semiconductor-related products.

Germanium is a by-product of zinc and lead production. However, many mines have reduced zinc and lead concentrate production due to rising treatment charges, which may impact future germanium supply.