Taiwanese chip giant TSMC does not expect its chip production to be directly affected by Chinese export restrictions on gallium and germanium. Other Taiwanese chip producers also do not yet see any problems.
The metals are used to manufacture processors and also electric cars. According to Chinese authorities, the export restrictions are necessary to guarantee its national security. The measures were promulgated on the eve of U.S. Treasury Secretary Janet Yellen’s visit to China.
Experts believe, however, that the export restrictions are in response to recent export measures from the United States for AI-related technology and possibly also to export restrictions on chip manufacturing machinery exports to the Netherlands.
No impact on chip production
According to Taiwanese chipmaker TSMC, the export measures for gallium and germanium are going to have little executive impact on production, Reuters writes. Companies such as WIN Semiconductors, whose supplies of gallium and germanium come mainly from Japan and Germany, and Visual Photonics Epitaxy also see few immediate problems.
Different sources possible
Gallium and germanium are byproducts of coal and bauxite, the raw material for aluminium. The metals are found in various locations around the world, including Australia, Europe and Japan. However, the extraction of these metals is a difficult and expensive process, something China can do cheaply.
Also read: Dutch further restrict chip manufacturing machine exports to China