On July 3, the Chinese government announced plans to implement export controls on metals primarily used in the manufacturing of semiconductors for artificial intelligence (AI) systems. The controls, starting from August 1, will require a government-issued license for the export of specific gallium and germanium products.
The move is aimed at protecting national security interests, according to a joint statement by the Chinese Ministry of Commerce and the General Administration of Customs. The controlled products include various gallium-related and germanium-related materials used in electronics, semiconductors, transistors, lasers, LEDs, solid-state electronics, and fiber optic systems.
The statement warns that exporting these products without proper permission or in excess will result in punishment. The Chinese government’s action comes in response to concerns about the concentration of global supply in China, as over 80% of the world’s gallium and a significant portion of germanium originate from the country, as reported by the European Association of Critical Raw Materials Alliance.
The export controls by China follow sanctions imposed by the United States in October 2022, which restricted Chinese developers’ access to advanced semiconductors, including Nvidia’s A100 chips. Chinese companies have been searching for alternatives to overcome the lack of access to higher-performance chips, and the United States is now considering additional restrictions on the export of high-level AI chips.
Nvidia, a prominent semiconductor developer, has experienced a surge in chip values due to the AI boom. Cointelegraph reached out to Nvidia for comment on the recent developments but did not receive a response at the time of publication.
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