On July 3, the Chinese Ministry of Commerce announced export controls on gallium and germanium, citing national security interests.
The regulations will be enforced from August 1.
The curbs require export operators to obtain a specific license and provide detailed information about importers, end-users, and end use.
Exporting without permission would result in administrative penalties and criminal responsibility.
Gallium is used in semiconductors, integrated circuits, mobile and satellite communications, LEDs, automotives, lighting, and sensors in avionic, space, and defense systems.
China produces 80% of gallium worldwide.
China also produces 60% of the total global germanium, which is used in fiber-optic cables, infrared imaging devices, optical devices, and solar cells.
The European Commission and India consider gallium and germanium as critical raw materials for their economic development and national security.
The U.S. opposes China's export controls and plans to diversify supply chains.
The European Commission has expressed concerns but doubts the move is related to security.
The U.S., Japan, and the Netherlands have implemented their own export control measures for national security reasons.
China denies targeting any specific country with its export measures and claims to implement fair and non-discriminatory export controls.
Impact on India
The impact on India is expected to be short-term, affecting immediate supply chains and chip-making plans.
The long-term consequences depend on alternative supply sources, domestic semiconductor production capabilities, and strategic partnerships.
There is an opportunity for India to focus on waste recovery from zinc and alumina production to obtain critical minerals like germanium and gallium.
Exploring substitutes such as indium and silicon is also suggested.
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