China Implements Export Controls on Key Semiconductor Materials, Threatening Foreign Tech Industries
- In response to U.S. chip export restrictions, China is imposing export license requirements on gallium and germanium, used in semiconductor production.
- Gallium and germanium have specific applications in the semiconductor industry, so the impact on the U.S. may be limited, but China's control of supply may force importers to find other sources.
- China's dominance as the world's largest producer of aluminum and zinc has given it control over the supply chain of gallium and germanium.
- The West relies heavily on Chinese imports of gallium and germanium, raising concerns over dependence on China.
- Although other suppliers are emerging, China's potential ban on exports threatens foreign tech industries that need these materials.