China to Restrict Exports of Rare Materials for Chips

This is a new chapter in the “chip war.” In recent days, the United States and the Netherlands, as well as Japan, have announced toughening the export of chip-forming equipment to China. Now the Dragon is announcing that it will start controlling the export of certain metals used by the semiconductor industry.

This was stated by the Beijing Ministry of Commerce, which explained that exporters would have to request permission to ship some materials, such as gallium and germanium that are considered strategic elements. The audit will start on August 1 – exporters must have a license.

China is the world’s largest producer of gallium with a 94% share, and for germanium and its derivatives the share is 67%. These rare materials are used not only in the production of semiconductors, but also in the production of solar panels, optical fibers, and infrared technologies.