SCMP:China’s gallium dominance threatened by dwindling supplies of critical chip-making metal, experts say

[Hamartia Antidote]

https://www.scmp.com/news/china/science/article/3226545/chinas-gallium-dominance-threatened-dwindling-supplies-critical-chip-making-metal-experts-say

• Chinese researchers say Beijing’s export curbs on semiconductor-related minerals could protect limited resources and national security
• While China is largest gallium producer, it relies on Japan and the US for high-end products, according to geologists

China produces more than 95 per cent of the world’s raw gallium. Photo: Wikipedia

China produces more than 95 per cent of the world’s raw gallium – a critical mineral for making semiconductors – but the situation may not last because of the rapid depletion of natural resources, Chinese experts have warned.

They added that Beijing’s decision to impose export controls on g
allium and germanium, another crucial mineral, could protect China’s limited resources and safeguard national security.

Chen Fengying, a researcher with the Beijing-based think tank China Institutes of Contemporary International Relations, said China’s export restrictions could be considered a reciprocal measure.

Beijing’s new rules came just after the Netherlands announced export controls on advanced chip manufacturing equipment on Friday, following Washington’s lead to curb China’s chip-making capabilities


Chen said the protection of finite resources through export controls was a way of protecting national security and interests, the state-owned Global Times reported on Tuesday.

Chinese foreign ministry spokeswoman Mao Ning said on Tuesday that it was common international practice to impose export restrictions and that China’s latest rules did not target any particular country.

“China has always been committed to maintaining the security and stability of the global supply chain and has always implemented fair, reasonable and non-discriminatory export control measures,” Mao said.

Under the restrictions, exporters in China must apply for permission from the Ministry of Commerce and obtain approval from the State Council, China’s cabinet, to export certain items.

Both gallium and germanium are key elements in making semiconductors and other electronics. China accounts for more than 95 per cent of the global gallium output and about 60 per cent of germanium production.

Gallium is used in microelectronic components for a diverse range of products. Two of its compounds – gallium arsenide and gallium nitride – are used to manufacture LEDs, solar cells, semiconductors and highly specialised integrated circuits, according to the US Geological Survey (USGS).

Germanium is mainly a by-product of zinc ore processing and is often used in electronics and solar energy applications, as well as in infrared radiation.

In 2022, Chinese geologists warned that because of the increasing cost of mining raw gallium and the depletion of resources, China could be forced to recycle gallium from Japan and the US instead of producing it domestically.

If that happened, China’s huge resource advantage would reverse and become an advantage for other countries, which would have an adverse impact on China’s gallium industry, geologists with the Henan Academy of Geology wrote in the peer-reviewed Chinese journal Mineral Exploration in August.

Although China is the world’s biggest producer of gallium, it is still at the bottom of the gallium industrial chain because it produces a lot of raw gallium products while relying on Japan and the US for high-end ones, according to the authors.

The geologists noted that the demand for gallium largely depended on the demand for high-end downstream products.