Jul 04, 2023 12:20:00

China restricts the export of gallium and germanium necessary for semiconductor manufacturing, is it a check to Western countries such as the United States?

On July 3, 2023,

the Ministry of Commerce , which has jurisdiction over China's economy and trade, announced that it would impose restrictions on the export of gallium and germanium, which are necessary for semiconductors. This move is seen as a check against Western countries that restrict the export of semiconductor chips and semiconductor manufacturing equipment to China.

2023 No. 23 of the Ministry of Commerce Maritime Office Announcement on the implementation and exit control of related matters
http://www.mofcom.gov.cn/article/zwgk/gkzcfb/202307/20230703419666.shtml

China to Restrict Exports of Metals Critical to Chip Production - Bloomberg
https://www.bloomberg.com/news/articles/2023-07-03/china-to-restrict-exports-of-metals-critical-to-chip-production

Germanium is used in optical fibers, infrared sensors, solar cells, and light-emitting diodes, while gallium is used in microwaves and high-speed switching circuits. China is the world's largest supplier of gallium and germanium, with about 60% of germanium and about 94% of gallium being produced in China. Also, there are only a few companies in the world that manufacture gallium arsenide, which is a material for semiconductor elements, with sufficient quality, and most of them are said to be produced in China.

China's Ministry of Commerce stipulates that exports of gallium, germanium, and some compounds containing these elements from China must first submit an application to the Ministry of Commerce for approval. China's Ministry of Commerce says it is necessary to protect national security and interests, and says it will implement regulatory measures from August 1, 2023.

Roger Entner, an analyst at telecommunications research firm Recon Analytics, said, ``The impact of China's gallium and germanium export restrictions will depend on the inventory of equipment and parts on hand. and prices will soar,' he said.

According to Bloomberg, an American economic newspaper, President Biden is considering export restrictions on chips used for AI to competing countries such as China , and Japan and the Netherlands are tightening export restrictions on semiconductor manufacturing equipment . I think it is a check against the restrictive measures against China by Western countries.

The United States is considering expanding AI chip export restrictions to China, due to the danger that China will use chips such as NVIDIA, AMD, and Intel for weapons and cyber attacks-GIGAZINE