China Export Limits on Gallium and Germanium: China’s export restrictions on gallium and germanium products have caused international shipments of these crucial chipmaking metals to dwindle for the second consecutive month, according to September’s customs data. In September, China’s exports of wrought germanium products were a mere 1 kilogram, compared to zero in August. This comes after a surge in shipments of wrought products to 8.63 metric tons in July, just before the export curbs took effect.
The customs data, categorized under “germanium oxides and zirconium dioxide,” indicates that exports in September amounted to 1,420 tons, up from 1,034 tons in August. However, it’s not clear whether this includes only zirconium dioxide or if some germanium oxide is also involved.
Notably, China didn’t export any wrought gallium products in both August and September, in contrast to the 5.57 tons exported in September 2022.
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The root cause of this export decline lies in the restrictions China introduced in July. These restrictions cover eight gallium and six germanium products and require exporters to obtain an export license for dual-use items and technologies, meaning those with potential military and civilian applications. In September, China’s Ministry of Commerce stated that some Chinese companies had indeed obtained such export licenses for gallium and germanium products.
Price-wise, germanium ingot spot prices remained steady at 9,700 yuan per kilogram on September 28. In contrast, gallium metal prices rose by 15% month-on-month to 1,905 yuan per kilogram on the same date. This increase was driven by temporary supply tightness due to improved demand and a delay in commissioning new production capacity.
In the first nine months of 2023, China exported 36.49 tons of wrought germanium, marking a 47.4% increase year-on-year. In contrast, wrought gallium exports dropped by 61.9% to 22.72 tons during the same period. These statistics illustrate the impact of China’s export restrictions on these critical materials for chip manufacturing.
Our Reader’s Queries
Where does China get its gallium?
China’s position as the leading producer of gallium is not a coincidence. The element is readily available as a by-product of bauxite refining for aluminum production. In recent years, the Chinese government has required aluminum refineries to extract gallium, further solidifying their dominance in the market.
What is China’s gallium exports in limbo after start of controls?
The global market for gallium, a crucial metal used in semiconductors, has been thrown into disarray due to China’s recent export restrictions. As a result, international prices for gallium have surged to a 10-month high, leaving suppliers in limbo as they await official approvals to ship the metal overseas. This move by China has caused uncertainty in the industry and could potentially impact the production of electronic devices worldwide.
Is there a shortage of gallium?
The cost of low-quality gallium in wholesale has remained steady at approximately $250-300 per kilogram, as per tradingeconomics.com. This is a significant drop from the prices that were twice as high a year ago. Currently, there is no scarcity of this resource. However, the more crucial resource is the gallium arsenide (GaAs) wafers that are utilized in the production of chips.
Which country has the most gallium?
Soft, bluish metal is predominantly supplied by China, with a staggering 95% of the global market share. Huawei, on the other hand, has filed over 2,000 patents for gallium nitride applications, showcasing their commitment to innovation and technological advancement.