China's Export Curbs on Semiconductor Materials and Their Impact on Chip Production
Monday, 26 August 2024, 23:01
Impact of China's Export Curbs on Semiconductor Materials
China's recent export controls on crucial semiconductor materials, specifically germanium and gallium, are causing ripples across global supply chains.
Rising Prices and Supply Shortages
- The prices of germanium have surged by 52% since June, reaching $2,280 per kilogram in China.
- Overall exports of gallium have dropped by about 50% since the implementation of these export restrictions.
- Analysts warn that continued throttling by Beijing could lead to severe production disruptions for advanced computing and military applications.
Strategic Motivations Behind Restrictions
The Chinese government asserts these export controls are necessary to protect its national security interests, responding to US-led technology restrictions.
Future Prospects for Semiconductor Supply Chains
Experts predict that if the geopolitical landscape remains tense, China's export controls are unlikely to ease, potentially threatening the stability of global semiconductor production.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.