In recent years, the COVID-19 pandemic and economic sanctions against China have affected chip manufacturing, generating a crisis from which it is barely emerging. However, winds of new problems are blowing.
In accordance with CNBC, China will stop its exports of gallium and germanium, two key metals for the creation of chips.
As the technological battle with the United States and Europe intensifies, the Chinese want to shield themselves. “It’s a warning shot, not a killing blow.” Eurasia Group said about the fact.
China is in the crosshairs of the United States for the alleged use of technology for espionage and data management. Since 2019 a trade war has intensified, using blacklists and restrictions to isolate the Asian nation.
This week, China’s Ministry of Commerce announced that it will regulate exports of gallium and germanium, for “national security reasons”.
“These latest measures are more limited in scope and while the new rules require Chinese exporters to first obtain a licensenothing automatically prohibits export to specific countries or end users”, notes Eurasia Group.
Gallium and germanium, key metals for the manufacture of chips and other elements
But, what are gallium and germanium
These are metals that They are not found naturally being generated as a by-product of the refining of other metals.
Germanium comes from zinc production, and the gallium of processing of bauxite and zinc ores.
while germanium It is used in solar products and fiber optics, being transparent to infrared radiation, the gallium is used for radio frequency chips for mobile phones and satellite communications.
Critical Raw Materials Alliance, a specialized agency, reports that China produces 60% of the world’s germanium and 80% of the gallium. The United States and Europe import the material, although not under transcendental conditions, so the restrictions do not cause much concern.
However, if in the future it is necessary to produce more than countries like Belgium, Canada, Germany, Japan and Ukraine do, the Americans will have to negotiate with the Chinese. Will it happen?