Explainer | What are 'germanium' and 'gallium' and why is China trying to restrict its export – Business Today
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China is restricting exports of two rare metals, germanium and gallium, which are key to the production of semiconductors and other high-tech products. The move is seen as a retaliation against the United States and other countries that have imposed sanctions on China’s technology industry. Gallium and germanium exporters in China will need to go through a tougher process to ship the raw materials.
What is Germanium?
Germanium is a semi-metal which makes it a good element for use as semiconductors. It is used in a variety of applications, including fiber optics, infrared optics (night vision goggles), and solar cell technologies, and infrared sensors. It is particularly used in the production of transistors and other semiconductor devices. Germanium has also been found to have some medicinal uses and is sometimes used as a dietary supplement.
What is Gallium?
Gallium is a soft, silvery metal that is in a liquid state near room temperature. It has a low melting point which helps in the production of semiconductors and electronic components. It is used in the manufacture of integrated circuits, light-emitting diodes (LEDs), and solar cells. There are some Gallium-based compounds which also have medical applications, including the treatment of certain types of cancers.
Why is China restricting exports of germanium and gallium?
China is the world’s leading producer of both germanium and gallium. As per the Critical Raw Minerals Alliance, China is responsible for production of 60 per cent of the world’s germanium and 80 per cent of the world’s gallium.
China’s move to curb both elements will have a significant impact on the global tech industry. These metals are essential for the production of semiconductors, which are used in everything from smartphones to computers to cars. The restrictions could also lead to higher prices for these metals, which could make it more difficult for companies to produce high-tech products.
The move by China to restrict exports of germanium and gallium is seen as a sign of the growing tensions between China and the United States. These two countries are locked in a trade war, and the restrictions on exports of these metals are seen as a way for China to retaliate against the United States.
Also read: China’s chipmaking export curbs ‘just a start’, Beijing adviser warns before Yellen visit
Impact on India
The restriction of the export of gallium and germanium will impact semiconductor manufacturing across the globe. However, Minister of State for Electronics and IT, Rajeev Chandrasekhar told Business Today that there will not be any abuse of supply chains.
Chandrasekhar said, “The India-US Initiative on Critical and Emerging Technology (iCET) precisely ensures that there is no such control or abuse of supply chains. [iCET] also covers materials. The world today is working closely with a new India to develop trusted global supply chains. Under Prime Minister Narendra Modi, the India-US partnership as well as India’s partnerships with like-minded countries will define the future of technology and global supply chains.”
Also Read: EXCLUSIVE: MoS Rajeev Chandrasekhar says China’s export curb on gallium, germanium won’t impact India
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