Core Insights - The aerospace and semiconductor supply chain is facing a significant shortage of rare earth elements, particularly yttrium and scandium, which are critical for defense technology and manufacturing processes [2][3] Group 1: Supply Chain Impact - At least two suppliers have begun to refuse orders from customers due to the shortage of yttrium, which has seen a price increase of 60% since November, now approximately 69 times higher than a year ago [2] - Some coating manufacturers are implementing rationing of materials, and one North American company has temporarily halted production due to the inability to procure yttrium [2][3] Group 2: Industry Concerns - Although the shortage has not yet impacted jet engine production, manufacturers are concerned about the potential effects on supply chains, especially with increasing demands from airlines and aircraft manufacturers like Boeing and Airbus [3] - The U.S. semiconductor industry is also facing declining inventories of scandium, which could jeopardize the production of next-generation 5G chips [3][4] Group 3: Dependency on Rare Earth Elements - Major U.S. semiconductor manufacturers rely on scandium for chip components used in nearly every 5G smartphone and base station, with no domestic production of scandium currently available [4] - Existing inventories of scandium may only last for a few months, highlighting the urgency of addressing the supply chain issues [4]