According to the Shanghai Securities News, tantalum—though not widely recognized—is a quintessential high-tech minor metal serving as a “behind-the-scenes hero” for industries including consumer electronics, semiconductor chips, and aerospace. With the rapid expansion of downstream applications like AI, tantalum's demand outlook remains promising.

Tantalum capacitors, high-temperature alloys, and semiconductor chips rank as the top three applications for tantalum, each exhibiting significant growth potential. Concurrently, security concerns in the Democratic Republic of the Congo (DRC)—the world's largest tantalum producer—have fueled market anxieties over raw material supply.

Emerging industries are driving growth in tantalum demand, with the metal undergoing a structural shift in its demand profile. While traditional tantalum capacitor applications provide a stable foundation, demand from high-temperature alloys and semiconductor manufacturing is rising.

Tantalum capacitors, high-temperature alloys, and semiconductor chips represent the top three demand sectors for tantalum. Additionally, tantalum is primarily used in chemical corrosion protection, tantalum chemicals, defense industries, and superconductivity. Data indicates that global tantalum consumption achieved a 14.00% compound annual growth rate (CAGR) between 2020 and 2024, surpassing 2,500 tons in 2024. By 2030, global consumption is projected to climb to 3,546 tons at a CAGR of no less than 6.00%.

Tantalum capacitors remain the largest downstream application, though their demand share has narrowed significantly from historical peaks of 60.00%–80.00% to 33.00% in 2024, while absolute demand has not declined.

The significantly heightened demands for power system stability in AI chips have, on one hand, boosted the overall capacitance requirements for electronic components, while on the other hand, imposing stringent standards on thermal management efficiency. Against this backdrop, tantalum electrolytic capacitors—key components offering both high capacitance density and exceptional stability—will not only sustain core demand in high-end consumer electronics but also directly benefit from incremental market opportunities driven by expanding demand for AI-enabled devices (such as AI smartphones, servers, wearables, and smart terminals).

Regarding high-temperature alloys, tantalum and niobium initially accounted for a relatively small share in this sector. However, as demands for material performance under extreme conditions continue to rise in aerospace engines, power generation, marine gas turbines, automotive turbochargers, and energy extraction, the demand for tantalum and niobium in high-temperature alloys has surged. By 2024, tantalum-containing high-temperature alloys had become the second-largest application area for tantalum, with an annual consumption of approximately 475 tons, accounting for about 19.00% of global tantalum consumption.

In China's high-temperature alloy application structure, aerospace dominates with a 55.00% share, representing the largest application sector. This is followed by power generation and machinery, accounting for 20.00% and 10.00% respectively.

Semiconductor chips have surged to become the third-largest application area for tantalum in recent years. In this sector, tantalum targets, leveraging their high melting point, excellent thermal stability, electrical conductivity, and inert compatibility with silicon and copper, have become the core material for advanced process copper interconnect barrier layers. They effectively prevent the diffusion of copper atoms into the silicon substrate.

As semiconductor processes advance toward greater refinement, the demand share for tantalum targets holds significant growth potential. Against the backdrop of geopolitical forces reshaping global supply chains, coupled with the AI computing power revolution driving surging demand for advanced process chips, the market for high-purity tantalum targets may experience explosive growth.

Industry data indicates that tantalum targets for chip manufacturing surged to become the third-largest application area for tantalum in 2024, with annual consumption reaching 425 tons, accounting for 17.00% of global tantalum consumption.

Supply-side challenges have prompted upstream and downstream players to keenly sense rising demand for tantalum capacitors and high-temperature alloys. Since the start of this year, tantalum wire and powder demand has shown signs of recovery, while some companies have reported higher-than-usual sales of high-temperature alloys in recent years.

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