Industry Overview
Semiconductor manufacturing is surprisingly commodity-intensive despite producing tiny chips. Each wafer fab consumes enormous quantities of ultra-pure water, electricity (often natural gas-derived), and specialty chemicals. Copper has replaced aluminum as the primary interconnect material in advanced nodes, while gold remains essential for wire bonding in packaging. The industry's explosive growth driven by AI is creating unprecedented demand for power (natural gas, uranium) and cooling infrastructure (copper for heat exchangers). A single large fab consumes as much electricity as a small city.
Commodity Exposure
Key Companies
Related ETFs
SMH (VanEck Semiconductor ETF)
SOXX (iShares Semiconductor ETF)