The Chinese government has announced plans to enhance export controls on gallium and germanium products, which are crucial for semiconductor production used in artificial intelligence (AI) systems. The move aims to safeguard national security interests and will require a government-issued license for exporting specific gallium and germanium products. The new controls will take effect from August 1.
The export restrictions include eight gallium-related products, such as gallium antimonide, gallium arsenide, and gallium oxide, along with six germanium products, including germanium dioxide and germanium tetrachloride. Gallium is widely used in electronics, particularly in semiconductors, transistors, and lasers, while germanium finds applications in semiconductors, solid-state electronics, and fiber optic systems.
Exporting these products without proper permission or exceeding the set limits will result in penalties, as stated in the joint statement issued by the Chinese Ministry of Commerce and the General Administration of Customs. These measures come amid growing concerns about the concentration of global germanium supply in China, as reported by the European Commission and the European Association of Critical Raw Materials Alliance (CRMA).
The United States had previously imposed sanctions in October 2022, restricting Chinese developers’ access to advanced semiconductors, including Nvidia’s A100 chips. This latest action by China strengthens its control over AI chip-making materials further. While some Nvidia chips are still accessible within the Chinese market, they only support small-scale AI models due to technological limitations. Chinese companies have been seeking ways to overcome their restricted access.
In response to China’s recent developments, there are discussions in the U.S. regarding the possibility of imposing additional restrictions on the export of high-level AI chips needed for powerful systems. Nvidia, a leading developer of sought-after semiconductors, has witnessed a significant increase in chip value since the AI boom. Cointelegraph reached out to Nvidia for comment, but they have not responded yet.
This move by China to tighten control over the export of AI chip-making materials raises concerns about the global supply chain for semiconductors and its impact on technological advancements. The regulation also highlights the importance of national security considerations in the development and access to critical technologies.