China exports no chip-making metals in August

China’s exports of two rare earth minerals essential for semiconductor production fell to zero in August, a month after Beijing imposed restrictions on overseas sales citing national security and interests.

China produces about 80% of the world's gallium and about 60% of its germanium, but the country sold no of either metal in August, according to Chinese customs data released on September 21. That compares with 5.15 tons of wrought gallium and 8.1 tons of wrought germanium exported just a month earlier.

Asked about the issue, He Yadong, a spokesman for China's Ministry of Commerce, said the ministry has approved applications from some companies that meet relevant requirements, and is reviewing applications from other companies.

In July, China announced export restrictions on eight gallium and six germanium products starting in August. Accordingly, domestic exporters of germanium and gallium products must apply for licenses when exporting items and technologies with potential military and civilian uses.

It is the latest salvo in an escalating battle between Beijing and Washington over access to advanced chipmaking technology, which is vital to everything from smartphones and self-driving cars to weapons production.

World - China did not export 2 chip-making metals in August — A researcher at the Hangzhou International Science and Innovation Center of Zhejiang University in China examines a gallium oxide metal plate on May 30, 2022. Photo: CNN

In October 2022, the US government announced a series of export control measures, including banning Chinese companies from purchasing advanced chips and chip manufacturing equipment without a license.

Japan and the Netherlands joined the effort earlier this year, further restricting chip exports to China.

Beijing responded by launching a cybersecurity investigation into US chipmaker Micron in April, then banning companies involved in critical infrastructure projects from buying its products.

More chip restrictions from Washington are likely to follow after Huawei unveiled its Mate 60 Pro smartphone, sending shockwaves across the tech world. The phone is equipped with a cutting-edge chip despite US efforts to block the Chinese tech giant from accessing such technology.

In a recent report, analysts from investment bank and asset management firm Jefferies said that the release of the Mate 60 Pro has “created political pressure” for the US to escalate sanctions against Huawei and Semiconductor Manufacturing International Corporation (SMIC), the Chinese chipmaker believed to be the “author” of the chip in this phone model.

“We expect Biden to focus on tightening the (chip) ban on China in the fourth quarter,” Jefferies analysts said .

Nguyen Tuyet (According to Reuters, CNN)

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