China will impose new restrictions regarding exports of two materials used in the semiconductor industry, which becomes the country's latest effort amid a "chip war" with the United States that earlier restricted chip exports to China.
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HSINCHU, TAIWAN - SEPTEMBER 16: A student wears cleanroom suit conducts a research inside the clean room of Taiwan Semiconductor Research Institution during a press semiconductor tour at Hsinchu Science Park on September 16, 2022 in Hsinchu, Taiwan.
China Imposing Export Restrictions on Chipmaking Materials
The commerce ministry of the Republic of China is set to impose several restrictions regarding exports of chipmaking materials in an effort to halt the United States from advancing its chip technology. According to Reuters, China imposed this restriction to protect national security and potential interests from other countries.
The newly-imposed restrictions will require companies and exporters to seek permission and licenses from the commerce ministry to ship some gallium and germanium products before shipping outside the country. The mentioned materials and their chemical compounds will be subject to export controls starting August 1.
It will apply to eight gallium-related products, including gallium antimonide, gallium arsenide, gallium oxide, gallium phosphide, gallium metal, gallium nitride, gallium selenide, and indium gallium arsenide. Wall Street Journal reported that this would affect some metals produced and refined primarily in China as neither gallium nor germanium is traded in large quantities.
The mentioned materials will give other sectors leverage and advancements in technology. Both are considered important materials to particular industries, as it was designed in and for use in the United States despite being developed in Asian regions like Taiwan and South Korea.
According to Critical Mineral Institute Board Member Alastair Neill, this "measure will have an immediate ripple effect on the semiconductor industry, especially with regards to high-performance chips." Neill has been working for 30 years of experience with China's metals industry.
Also Read: Huawei Says China's Chip Sector Will Be 'Reborn' Amid US Sanctions
US-China Chip War
Bloomberg reported that China has been battling for technological dominance in every aspect, from quantum computing to artificial intelligence. But chip manufacturing has been one of the sectors the country has been releasing efforts on as the United States has also taken increasingly aggressive measures to keep China from gaining dominance.
The Biden administration has made it difficult for China to buy lithography machines needed for high-performance chips. Regulators have been encouraging allies in Europe and some parts of Asia to also halt China's dominance in this sector.
That includes the Netherlands in Europe, which is set to deliver a one-two punch with the United States to China's chipmakers this coming summer by restricting sales of chipmaking equipment that is allegedly being used to strengthen China's military.
The limits and controls regarding chip export also come at a time when different nations worldwide have been making some efforts to reduce reliance and dependence on overseas countries.
Recently, Taiwanese officials have called out the United States regarding statements that called the dependence of the country on chips made from Taiwan "untenable" and "unsafe."
Related Article: US Chip Ban Threatens the Advancement of China's AI, Semiconductor Industry - Experts Say
