As Beijing and Washington wrest control of the world chip market, China announced on Monday that it would impose export restrictions on two rare metals necessary for the production of semiconductors due to national security concerns.
China Limiting Chip-making Materials’ Export
According to China, which is one of the biggest suppliers of Gallium and Germanium, the exports will require a license starting August 1 for the chip-making metals.
The Chinese Ministry of Commerce and Customs said that they will need to know the specific reason for using these materials if you are going to order them. National interest and security are the primary reason for this new requirement.
Gallium and Germanium are essential raw materials for various industries, with China producing 80% of the former’s global production. Export curbs are a response to Washington’s blacklists targeting Chinese companies, aiming to maintain US dominance in semiconductor design.
The US has tightened export restrictions on semiconductors, while the Netherlands will impose restrictions on electronic chip technology exports starting in September.
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