Tungsten, a critical input for high-performance semiconductor manufacturing, has seen prices surge as much as 622% in 2026 as Chinese export restrictions, stronger military demand and AI chip production collide. China controls roughly 80% of global tungsten supply and began restricting exports in 2025 by limiting the firms permitted to ship the metal abroad. By 2026-2027, only 15 companies were authorized to export it. The supply squeeze has spread beyond semiconductors and defense to hard-metal products such as cutting tools and drill bits, which account for about two-thirds of global tungsten demand and roughly 60% of U.S. demand. Japan's Kanto Denka and Central Glass stopped producing tungsten hexafluoride, or WF6, on July 1, 2026, after they were unable to secure the high-purity tungsten powder required for production. Their combined capacity represented about 25% of global WF6 supply, or roughly 2,200 tons per year. Samsung and SK Hynix are accelerating efforts to identify and qualify alternative suppliers, while WF6 prices could rise 70% to 90% in the second half. A Chinese company has announced an additional 1,000 tons of annual WF6 capacity. Western non-Chinese tungsten supplies remain limited and much of the available material has already been committed. A U.S. strategic reserve sought market offers for tungsten this year but did not proceed amid tight spot supply, rising prices and concerns that large-scale government purchases could disrupt the market. Global tungsten demand is projected to rise from approximately 143,000 tons in 2025 to 210,000 tons by 2035, with structural deficits expected through at least 2028. Almonty Industries brought its Sangdong mine in South Korea to full production in July 2026, but its output is not sufficient to resolve the global deficit, and new projects outside China will take years to develop.