China’s dominance in chip-making metal threatened by dwindling supply: experts – South China Morning Post
Beijing’s new rules came just after the Netherlands announced export controls on advanced chip manufacturing equipment on Friday, following Washington’s lead to curb China’s chip-making capabilities.
Chen said the protection of finite resources through export controls was a way of protecting national security and interests, the state-owned Global Times reported on Tuesday.
Chinese foreign ministry spokeswoman Mao Ning said on Tuesday that it was common international practice to impose export restrictions and that China’s latest rules did not target any particular country.
“China has always been committed to maintaining the security and stability of the global supply chain and has always implemented fair, reasonable and non-discriminatory export control measures,” Mao said.
Under the restrictions, exporters in China must apply for permission from the Ministry of Commerce and obtain approval from the State Council, China’s cabinet, to export certain items.
Both gallium and germanium are key elements in making semiconductors and other electronics. China accounts for more than 95 per cent of the global gallium output and about 60 per cent of germanium production.
Germanium is mainly a by-product of zinc ore processing and is often used in electronics and solar energy applications, as well as in infrared radiation.
According to the USGS, 53 per cent of US gallium imports came from China between 2018 and 2021, followed by Germany and Japan at 13 per cent each.
If that happened, China’s huge resource advantage would reverse and become an advantage for other countries, which would have an adverse impact on China’s gallium industry, geologists with the Henan Academy of Geology wrote in the peer-reviewed Chinese journal Mineral Exploration in August.
Although China is the world’s biggest producer of gallium, it is still at the bottom of the gallium industrial chain because it produces a lot of raw gallium products while relying on Japan and the US for high-end ones, according to the authors.
The geologists noted that the demand for gallium largely depended on the demand for high-end downstream products.
“With the expansion of China’s business in the global LED market, enhancing the international competitiveness of downstream gallium manufactured products is a must for the development of the gallium industry,” they said.
They suggested better recycling mechanisms and more recycling of gallium-containing ores.
“The demand for gallium is increasing every year. Although China is rich in gallium resources, the recycling system is not perfect and it will constrain China’s gallium industry to a sustainable development path,” the study said.
