China limits export of two major metals used in chips from Aug 1

New Delhi, July 5 (KNN) China has announced restrictions on exports of two key metals used in the manufacturing of semiconductors which is gallium and germanium in an effort to protect its “national security”.

Earlier this week the Chinese government announced that exports of the two metals along with their chemical compounds would be curbed starting August 1.

China and India both are aggressively trying to build semiconductor manufacturing capacity to reduce their dependence on the import of equipment.

The restrictions are significant because China produces around 60% of the global germanium output and around 80% of gallium, according to the European industry association Critical Raw Materials Alliance (CRMA).

In order to protect Chinese national security Beijing has decided to restrict the exports of two metals.

For shipping the two metals out of China, exporters will have to apply for licences and will be required to report details of the overseas buyers and their applications.  (KNN Bureau)