[News] China’s Tungsten Export Curbs Send AI PCB Drill Bit Prices Soaring; Nearly 80% Global Output Share Highlights Supply Risks

China’s export restrictions on critical metals are disrupting supplies of micro drill bits. According to Nikkei, restrictions on tungsten have affected refiners in Japan, Taiwan, the U.S. and Europe, sending drill bit prices soaring severalfold. Micro drill bits are used to create tiny holes in printed circuit boards (PCBs) and chip substrates, enabling electrical connections between layers.

As Nikkei explains, the AI computing boom is driving demand for increasingly complex PCBs and chip substrates, with more layers, harder materials and tighter precision requirements making drilling more challenging. According to Taiwan’s Mirror Daily, PCB drill bit maker Topoint Technology said thicker, multilayer AI server boards now require four to five drill bits per drilling set, up from around three previously. The company is also developing longer, higher-aspect-ratio bits to meet these requirements.

China’s Tungsten Dominance Exposes Global Supply Chain Risks

China accounted for approximately 79% of global tungsten production in 2025, according to the U.S. Geological Survey, as noted by Nikkei. Other producers, including Vietnam, Kazakhstan, North Korea, Australia and Austria, hold much smaller shares. Several countries are stepping up efforts to expand tungsten production and reduce reliance on China.

Major suppliers of high-end tungsten carbide materials for precision cutting tools include Japan’s Sumitomo Electric Industries, Kyocera and Mitsubishi Materials, U.S.-based Kennametal and Sweden’s Sandvik, according to Nikkei. Despite their advanced manufacturing capabilities, these companies remain vulnerable to China’s dominance in refined tungsten materials and powders.

Meanwhile, Chinese manufacturers, including Guangdong Dtech Technology and Shenzhen Jinzhou Precision Technology, have gained market share, benefiting from access to cheaper tungsten supplies, Nikkei notes. Chinese manufacturers are also accelerating expansion. According to China Nonferrous Metals News, Shenzhen Jinzhou Precision Technology, a subsidiary of China Tungsten High-Tech, has launched six capacity expansion projects since 2025, expected to add nearly 800 million micro drill bits in capacity.

China imposed export restrictions on several tungsten-related materials in early 2025, alongside other critical metals such as bismuth and molybdenum. According to Shanghai Metals Market data cited by Nikkei, prices of ammonium paratungstate (APT), an intermediate tungsten product and key pricing benchmark, have surged from around RMB 212,750 (US$31,900) per metric ton in February 2025 to more than RMB 530,000 as of the week of the report.

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(Photo credit: DTECH)