China's largest germanium producer Yunnan Germanium has announced plans to expand its germanium wafer production capacity.

The firm will build a new production line for low-dislocation density monocrystalline germanium wafer with capacity of 120,000 units/yr.

It also plans to expand existing production facilities to increase their capacity for germanium wafer to 2.5mn units/yr of four-inch equivalent, from 300,000 units/yr of four-inch and 200,000 units/yr of six-inch currently.

The company did not disclose details on the launch dates of the new projects, but started the environmental impact assessment on 16 June.

It produced 502,033 units of four-inch equivalent of photovoltaic-grade germanium wafer in 2024, up by 63pc from 2023, according to its 2024 annual report.

Yunnan Germanium has accelerated increasing its output of deep-processed products in recent years to earn more profits. The germanium wafer is a basic component for chips, and domestic demand is expected to increase given the US' restrictions on its semiconductor exports to China.

The Argus-assessed range for 99.99pc-grade metal widened to 14,000-16,100 yuan/kg ($1,952-2,245/kg) ex-works on 26 June from Yn14,300-15,500/kg ex-works on 19 June. Prices held steady at the start of the month but dipped slightly in the middle of June, when muted demand from the infrared sector outweighed tight feedstock supply.