China’s Export Policy Shift: Impact on Chipmaking Materials
China Implements Export Controls on Key Chipmaking Materials
In a move aimed at safeguarding national security and interests, China’s commerce ministry announced on Monday that it will impose export controls on certain metals widely used in the semiconductor industry. The controls specifically target gallium and germanium products, which are considered strategic rare elements by Beijing.
Starting from August 1, exporters will be required to obtain permission and export licenses for eight gallium-related products and six germanium products. The gallium-related products include gallium antimonide, gallium arsenide, gallium metal, gallium nitride, gallium oxide, gallium phosphide, gallium selenide, and indium gallium arsenide. The germanium products subject to controls include germanium dioxide, germanium epitaxial growth substrate, germanium ingot, germanium metal, germanium tetrachloride, and zinc germanium phosphide.
China’s commerce ministry emphasized that exporters must adhere to the new regulations, and failure to obtain permission or exceeding permitted volumes will result in penalties. These measures come as the United States is reportedly considering additional restrictions on the shipment of high-tech microchips to China. The Netherlands is also expected to join the effort by further limiting sales of chipmaking equipment to China.
The export controls on gallium and germanium products highlight the escalating tensions surrounding access to high-tech microchips between China and the United States. The implementation of these measures adds to the challenges faced by the semiconductor industry and reflects the geopolitical dynamics impacting the global supply chain.
