Alumina, a critical raw material for manufacturing micro-electromechanical systems (MEMS) sensors such as accelerometers, is transmitting cost pressures upstream through the supply chain. With nearly half of China’s alumina producers now operating at cash costs above prevailing market prices, some high-cost capacity may be forced offline, potentially driving alumina prices higher or increasing supply volatility. This pressure first impacts accelerometer manufacturers, raising their component costs, and subsequently affects sensor module suppliers that integrate these accelerometers, exposing them to both cost inflation and delivery uncertainty. Qualcomm, a leading supplier of chips for mobile and IoT devices, incorporates hardware and software support for such sensors into several of its chip platforms. Sustained cost increases in sensor modules could dampen demand from its customers—smartphone and IoT device makers—indirectly affecting Qualcomm’s chip shipment volumes and pricing power. Although Qualcomm does not source alumina directly, structural tightness at the raw material level is amplifying risks across multiple supply chain tiers, posing potential challenges to the cost structure and delivery stability of its product ecosystem.