China to Restrict Export of Chipmaking Materials

China has declared that it is going to control the exports of several metals used in the semiconductor sector, including goods made of gallium and germanium.

The announcement follows Washington’s attempts to restrict Chinese access to select advanced microprocessors.

China’s gallium and germanium are two important elements utilized in the production of computer chips.

Germanium is also utilized in solar cells, fiber optic cables, and infrared technologies.

Reports claim the world’s largest producer of the metals, China, will require special licenses starting the next month to export germanium and gallium.

Military, communication, and semiconductor equipment all require silvery metals. They are also important components of items like solar panels.

The limitations were necessary, according to China’s Ministry of Commerce, to “safeguard national security and interests.”

A hard conflict between the two greatest economies in the world is centered on semiconductors, which power everything from mobile phones to military weapons.

Chinese Government Tightening Controls Over Exports Of Materials

Reports stated that Gallium antimonide, gallium arsenide, gallium metal, gallium nitride, gallium oxide, gallium phosphide, gallium selenide, and indium gallium arsenide are the eight goods linked to gallium that will be subject to Chinese restrictions beginning on August 1.

They will also apply to six different germanium products: zinc germanium phosphide, germanium dioxide, germanium epitaxial growth substrate, germanium ingot, germanium metal, and germanium tetrachloride.

Several Countries Joined The Initiatives

The US has made efforts to limit China’s access to technology, including processors used in supercomputing and artificial intelligence, that it believes may be exploited for military purposes.

No matter where in the globe the chips are produced, Washington declared in October that it would need licenses from businesses shipping them to China using US equipment or software.

China has repeatedly referred to the US as a “tech hegemony” in reaction to export restrictions put in place by Washington.

Several nations, notably the Netherlands and Japan, have joined the efforts. The regulations are anticipated to have an impact on Dutch ASML, a major player in the worldwide semiconductor supply chain.

In the meanwhile, Japan intends to limit part of its exports of manufactured computer chips.

The restrictions, which were announced in March, would apply to 23 different types of production equipment for semiconductors.

Beijing has recently restricted US companies affiliated with the US military, such as aircraft manufacturer Lockheed Martin.

US Treasury Secretary Janet Yellen, who will be in China for four days starting on Thursday, has issued a warning against severing the connections that bind Washington and Beijing economically.

“I think we gain and China gains from trade and investment that is as open as possible, and it would be disastrous for us to attempt to decouple from China,” US Treasury Secretary Janet Yellen.

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