![]() ![]() Taiwan and South Korea downplayed disruption from the curbs. Some downstream users with long-term sales contracts "are vexed about a possible jump in raw material prices, as it raises their production costs and may cause them losses", he said. The industry had expected some export controls on these metals, but the timing had surprised, said the manager, who declined to be named citing the sensitivity of the matter. 1 and who expected it could take as long as two months to obtain export permits.ĭomestic offers rose 2% to 10,000 yuan ($1,380) per kg on Tuesday, he said, with export prices up 7% to $1,500 per kg. While the new rules do not target specific countries, exports will be more difficult and China could deny licenses to some locations, said Bernstein analysts.īut any rise in prices for gallium- and germanium-based materials due to a lack of supply may result in semiconductor companies looking at alternative materials, they added.Ī manager at a China-based germanium producer reported receiving queries from buyers in Europe, Japan and the United States hoping to build stockpiles before Aug. ![]() Germany's BDI industry group said China's move strengthens the argument for greater raw materials independence. The German chipmaker produces gallium nitride semiconductors in Villach, Austria and will soon make them at its factory in Kulim, Malaysia. semiconductor wafer maker AXT Inc (AXTI.O) said on Monday its Chinese manufacturing Tongmei would seek permits to keep exporting gallium and germanium substrate products.Īn Intel (INTC.O) spokesman said the company was assessing the ministry's statement, adding: "Our strategy of having a diverse, global supply chain minimizes our risk to local changes and interruptions."Ī source at Infineon (IFXGn.DE) said most supplies come from outside of China. "On the other hand, it could give very significant impetus to North American and European governments – along with producers and consumers of high-purity gallium outside of China – to consider more seriously what it takes to establish supply chain optionality." EXPORT PERMITS, DISRUPTION WORRIES "This was probably the least consequential measure (that China could take), since it does not hurt as much as much as other options could," Karayannopoulos said. REUTERS/Florence Lo/Illustration/File Photo are displayed on a printed circuit board with semiconductor chips, in this illustration picture taken February 17, 2023. ![]() Neo Performance CEO Constantine Karayannopoulos told Reuters that it would be difficult to meet market demand without Chinese gallium supply though work-arounds could be possible with the "right industrial public policy incentives."įlags of China and U.S. Shares in 5N Plus Inc (VNP.TO), a Canada-based company that produces specialty semiconductors and performance materials, rallied 8.9%, while Neo Performance Materials (NEO.TO), a recycler of gallium and manufacturer gallium trichloride, rose 5.73%. Shares in Teck Resources (TECKb.TO), North America's biggest germanium producer, briefly climbed more than 1% in early trading before recording a gain of 0.11% on Tuesday. In a sign of the potential for new production outside China, Nyrstar (NYR.BR) said it would look at germanium and gallium projects in Australia, Europe and the United States. The commerce ministry will meet with major producers of the metals on Thursday to discuss the export restrictions, four people familiar with the matter told Reuters. Top importers of germanium products were Japan, France, Germany and the United States, it said. In 2022, top importers of China's gallium products were Japan, Germany and the Netherlands, news website Caixin said, citing customs data. "It is a fantasy to suggest that another country can replace China in the short or even medium term."Ĭhina produces most of the world's gallium and germanium. "Gallium and germanium are just a couple of the minor metals that are so important for the range of tech products and China is the dominant producer of most of these metals," Arkell said. China is the world's biggest producer of rare earths, a group of metals used in EVs and military equipment. Some in the metals industry said they feared China could follow with new restrictions on rare earth exports, after curbing shipments 12 years ago in a dispute with Japan. The eight gallium and six germanium products cited are also used in other high-tech industries. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |