China is the world’s largest producer of the two elements, accounting for more than 95 per cent of global gallium output and 67 per cent of germanium.
However, the new figures for germanium were less rosy. China exported a mere 3.3 metric tonnes of wrought germanium in December compared to 8.78 metric tonnes in July.
China’s top fabless chip firms, such as Loongson, estimate big losses in 2023
China’s top fabless chip firms, such as Loongson, estimate big losses in 2023
No germanium was sold abroad in August, while only a trickle left the country in October and November – 0.64 and 0.72 metric tonnes respectively.
For the whole of 2023, China exported about 41 metric tonnes of germanium and 44 metric tonnes of gallium.
Western companies have been dependent on China’s supply of the two crucial components.
China’s gallium and germanium exports tumble as shipment controls take effect
China’s gallium and germanium exports tumble as shipment controls take effect
Despite Beijing’s export rules, there had been no “dramatic reductions” in the supply of gallium and germanium, according to Chris Miller, author of the book Chip War: The Fight for the World’s Most Critical Technology.
China realised that cutting off supplies would be “costly to itself as well as to the US and other countries”, Miller said.
“It’s not a costless tool for China to use because it would create disruptions that would ricochet through electronic supply chains and hit China too.”