China will restrict the export of necessary materials for the production of microchips
Technology
Since August, Beijing has imposed restrictions on the export of gallium and germanium, which are necessary for the production of semiconductors, chips, electric vehicles and telecommunications. Experts believe that this will lead to an increase in prices on the market.
From August 1, China will impose restrictions on the export of industrial goods and materials containing gallium and germanium to ensure its national security and interests, the Ministry of Commerce of the People's Republic of China said in a statement on Monday.
According to the new Law, gallium, which is used in the production of semiconductors and optoelectronic devices, and germanium, an important raw material for the semiconductor industry, as well as related products, cannot be exported without permission from August 1.
The export of other industrial materials, such as gallium nitride, gallium oxide and zonally refined germanium ingot, was also banned.
Now exporters will have to apply for export licenses in accordance with the rules and submit them to the Ministry of Commerce through provincial trade authorities.
The Ministry will review the documents in due time and may review them jointly with the relevant departments. Based on the results of the review, the Ministry will decide whether to issue or refuse to issue licenses.
Han Xiaomin, CEO of JW Insights, a Chinese semiconductor market research company, said that banned goods are important materials for semiconductors, and they are closely related to applications in the military industry. China has every reason to impose export controls on these materials to ensure national security.
According to Han, this step may be a countermeasure against the US-imposed control over the export of chips to China.
China is one of the largest suppliers of gallium and germanium to the market, so metal prices may rise, Bloomberg notes. China accounts for about 94% of global gallium production.
Despite the fact that gallium and germanium are also produced in other countries, purchases from China are more profitable because it keeps them relatively cheap, while metal mining can be quite expensive, the agency writes. The article notes that with a limited supply, higher prices may lead to a reduction in production in other countries.
According to the new Law, gallium, which is used in the production of semiconductors and optoelectronic devices, and germanium, an important raw material for the semiconductor industry, as well as related products, cannot be exported without permission from August 1.
The export of other industrial materials, such as gallium nitride, gallium oxide and zonally refined germanium ingot, was also banned.
Now exporters will have to apply for export licenses in accordance with the rules and submit them to the Ministry of Commerce through provincial trade authorities.
The Ministry will review the documents in due time and may review them jointly with the relevant departments. Based on the results of the review, the Ministry will decide whether to issue or refuse to issue licenses.
Han Xiaomin, CEO of JW Insights, a Chinese semiconductor market research company, said that banned goods are important materials for semiconductors, and they are closely related to applications in the military industry. China has every reason to impose export controls on these materials to ensure national security.
According to Han, this step may be a countermeasure against the US-imposed control over the export of chips to China.
China is one of the largest suppliers of gallium and germanium to the market, so metal prices may rise, Bloomberg notes. China accounts for about 94% of global gallium production.
Despite the fact that gallium and germanium are also produced in other countries, purchases from China are more profitable because it keeps them relatively cheap, while metal mining can be quite expensive, the agency writes. The article notes that with a limited supply, higher prices may lead to a reduction in production in other countries.
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