China’s recent decision to restrict the export of two rare metals, germanium and gallium, has raised concerns in the global tech industry. Both of these metals play a crucial role in the production of semiconductors and other high-tech products. Here’s what you need to know about gallium, germanium, and the reasons behind China’s move to restrict their exports.
What is Gallium?
Gallium is a soft, silvery metal that remains in a liquid state near room temperature, making it unique among metals. Its low melting point makes it ideal for use in the production of semiconductors and electronic components. Gallium is a vital component in manufacturing integrated circuits, light-emitting diodes (LEDs), and solar cells. Additionally, certain gallium-based compounds find applications in medical treatments, including the treatment of specific types of cancers.
Reasons behind China’s Export Restrictions:
China is the world’s largest producer of both germanium and gallium, contributing to 60% of global germanium production and 80% of global gallium production, according to the Critical Raw Minerals Alliance. By restricting the exports of these metals, China aims to assert control over the global tech industry, as these metals are essential for semiconductor production, used extensively in smartphones, computers, and automobiles. The restrictions could potentially lead to higher prices for these metals, affecting the overall production of high-tech products worldwide.
Geo-Political Tensions:
China’s move to restrict germanium and gallium exports is viewed as a response to the trade war between China and the United States. The two nations have been locked in economic tensions, leading to retaliatory measures from both sides. The export restrictions serve as a means for China to retaliate against the United States and other countries that have imposed sanctions on China’s technology sector.
Impact on India:
The restrictions on gallium and germanium exports could have significant implications for semiconductor manufacturing globally. However, Minister of State for Electronics and IT, Rajeev Chandrasekhar, reassures that there will not be any abuse of supply chains. He emphasizes the India-US Initiative on Critical and Emerging Technology (iCET), which aims to develop trusted global supply chains in collaboration with like-minded countries. Chandrasekhar believes that partnerships between India and other nations will define the future of technology and global supply chains under Prime Minister Narendra Modi’s leadership.
