Copper Crunch: Tech Industry Braces for Price Hikes and Supply Chain Disruptions
The escalating costs and dwindling availability of essential components like memory are well-documented, but a critical raw material shortage is now threatening the tech industry: copper. Orders are facing significant delays, and prices are surging, impacting everything from PC components to data center infrastructure.
A recent report highlights the growing concerns within the industry. According to Roman Hartung, CEO of Thermal Grizzly, a leading provider of high-performance cooling solutions, sourcing copper at affordable prices has become increasingly difficult. Hartung detailed these challenges in a recent YouTube video, as initially reported by VideoCardz.
In October, Hartung attempted to procure 12mm copper plates – a standard order typically costing around 190 euros ($225) with a delivery timeframe of one to two weeks. However, his supplier quoted a price of 280 euros ($330) with an estimated delivery time of four months.
The price of copper has risen dramatically over the past year, increasing from $9,000 per ton to $13,000 per ton – a roughly 50% jump. While the increase is slightly less pronounced in euros, at 30%, Hartung emphasized that this remains “absolutely massive for one year.” The situation is further complicated by a 60% increase in the price of tin in euros and an 80% surge in US dollars. In contrast, other raw materials like aluminum and nickel have seen only a modest 5% price increase, while steel prices have actually decreased.
Copper’s ubiquitous presence in electronics makes this shortage particularly concerning. “If you make your PCBs or if you make cooling components for data centers, for servers or like power supply units, often you need copper for wires and then tin for soldering and these kind of things,” explained Hartung. The surge in demand for components powering new AI technologies is exacerbating the problem, leading to a significant strain on copper supplies.
The situation is not solely driven by demand. Hartung pointed to the impact of tariffs implemented during the Trump administration, which prompted companies to stockpile materials within the United States in anticipation of further increases. “They drained warehouses in China and Europe,” Hartung stated. “So the global copper supply is actually not that bad. But a lot of copper was shifted from Europe and Asia towards the US, which then led to very bad availability in Europe and Asia. And just because you have globally a lot of copper, [that] doesn’t really help if you have local shortages. It will still drive up the copper price.” A dip in the value of the US dollar, attributed to “Trump’s politics,” has also contributed to the instability.
These rising costs are already translating into price increases for consumers. Hartung anticipates that Thermal Grizzly will likely need to increase the pricing of its GPU blocks from approximately 500 euros to 550 euros. He has also consulted with the CEOs of Be Quiet! and Alphacool, who are facing similar challenges.
Alphacool CEO Andreas Rutnicki confirmed that the company is “compelled to adjust prices by the end of February by approximately 5-10% across all products,” with a particularly severe impact on copper-based items. Rutnicki also highlighted a tripling in the price of RoHS-compliant solder and noted that relying on China for affordable production is no longer a viable option. “Production in Eastern Europe could be more cost-effective, but the necessary infrastructure is not available there,” he said. Be Quiet! CEO Aaron Licht stated that his company is currently maintaining stable pricing but may be forced to re-evaluate if “elevated raw material prices persist over a longer period or intensify further.”
The copper shortage underscores the fragility of global supply chains and the interconnectedness of the tech industry. As demand for electronics continues to grow, securing a stable and affordable supply of this essential material will be crucial for manufacturers and consumers alike.
