Thursday, February 22, 2024

China’s gallium exports in December reached the highest level since July, according to customs data

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Citing national security concerns, the Chinese government has required Chinese gallium and germanium exporters to obtain government and government permits starting in August. Share information about international customers and the intended use of the product.
Both metals and their compounds are used in advanced chips, communications equipment, Electric car.

China is the world’s largest producer of these two elements, accounting for more than 95 percent of global gallium production and 67 percent of germanium.

Before last year’s regulations were introduced, China was seeing: Rapid increase in exports – About 7.5 tonnes of gallium in July – as buyers scrambled to secure supplies.

However, the new numbers for germanium were not so rosy. China exported only 3.3 tons of forged germanium in December, compared to 8.78 tons in July.

Top Chinese fabless semiconductor companies such as Loongson predict huge losses in 2023

In August, no germanium was sold overseas, but in October and November, only a small amount of germanium left the country, amounting to 0.64 tons and 0.72 tons, respectively.

In all of 2023, China exported about 41 tons of germanium and 44 tons of gallium.

Many in the West believe Beijing imposed the restrictions in retaliation for Washington’s export restrictions aimed at preventing China from producing advanced semiconductors while the two world powers remain in isolation. ing. technology war.

Western companies have relied on China’s supplies of these two critical components.

China’s gallium and germanium exports decline as shipping restrictions take effect

Chris Miller, author of the book, said there had been no “drastic reduction” in the supply of gallium and germanium despite the Chinese government’s export restrictions. Chip Wars: The battle for the world’s most important technology.

Miller said China recognizes that cutting off supplies is “costly not only for itself, but also for the United States and other countries.”

“This is not a costless tool for China because it will ricochet through the electronic supply chain and cause disruptions that will also hurt China.”

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