China’s Export Restrictions on Gallium and Germanium: Potential Impact on TSMC Semiconductor Manufacturing

Chip manufacturer TSMC says it does not expect any impact from China’s export restrictions announced this week. Gallium and germanium, which China has restricted exports, are used in semiconductor manufacturing.

Gallium

TSMC says it is monitoring the situation, writes news agency Reuters. “After evaluation, we do not expect the export restrictions on gallium and germanium raw materials to have a direct impact on TSMC production,” the company said. The wording leaves open the possibility that there will be long-term consequences for TSMC.

China announced export restrictions on gallium and germanium on Monday. According to the Chinese government, the current restrictions are “just the beginning”. More than 97 percent of all gallium and germanium comes from China.

The export restrictions come in response to recent geopolitical trade restrictions spearheaded by the United States. Many advanced chips and chip production machines may no longer be exported to China and Russia, among others, according to the US because of the possible military applications of these technologies. At the end of June, the Netherlands also announced a ‘country-neutral’ license requirement for the export of production equipment for semiconductors. Certain ASML machines, among other things, may therefore not be exported without a permit.

2023-07-06 13:40:38
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