China has imposed export restrictions on two major raw materials critical to the chip industry. Since August 1, exporters of these metals, called gallium and germanium, must first apply for permission from the Chinese government to ship them out of the country. They must also report details on foreign buyers.
The measure appears to be a reaction by the Chinese to recently announced export restrictions on Dutch chip machine maker ASML to China. For example, Minister Liesje Schreinemacher (External Trade) announced last week that ASML will no longer be allowed to export certain chip machines to China from September.
China is the world’s leading producer of the metals gallium and germanium. These raw materials are used for chips in electric cars, cell phones and the defense industry. China accounts for about 94 percent of global gallium production, according to Britain’s Critical Minerals Intelligence Centre.
The country has long struggled for dominance in technology, from quantum computing to artificial intelligence and chip manufacturing. The United States is taking increasingly far-reaching measures to prevent this and has called on allies in Europe and Asia to do the same.
Source: BNR
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