China Restricts Gallium and Germanium Exports

On 3 July 2023, China issued a public notice announcing export controls on gallium and germanium, restricting the export of these raw materials. Gallium and germanium are essential raw materials for high-tech industries such as semiconductors, solar cells and rare earth permanent magnet materials. China is the only country in the world that can produce these raw materials on a large scale, so once China restricts exports, the world will not be able to find substitutes for a short period of time, leading to a significant increase in the price of gallium and germanium.

As of 2021, China has a commanding lead in the production of gallium and germanium. Globally, China produced 420 tonnes of gallium, Russia produced 5 tonnes of gallium, Japan produced 3 tonnes of gallium, South Korea produced 2 tonnes of gallium, and other countries produced zero. Chinas gallium production accounted for 98% of the total global capacity, forming an absolute monopoly. As for germanium, global reserves are about 8,600 tonnes, of which the US accounts for 46%, China 41% and Russia 10%. Although the United States has the largest germanium reserves, Chinas germanium production accounts for 72% of the worlds germanium production and has become the worlds major germanium supplier due to Chinas technical and technological advantages in germanium production.

Gallium and germanium are essential materials in semiconductor manufacturing, such as gallium nitride and gallium arsenide, which play an important role in third-generation semiconductors.