China expands restrictions on rare land export and threatens global chip jail

China has imposed a new round of restrictions on strategic mineral exports, directly affecting the semiconductor industry and data storage. From now on, products that contain Elements such as Scandio and Disciplos – vital for radio frequency applications and memory devices – will require a special license to be exported, according to the determination of the Ministry of the Chinese Economy.

The impact of these measures reaches giants as Broadcom, Qualcomm, TSMC, Samsung, Seagate e Western Digitalincreasing the pressure on the global chip production chain.

Where are the scand to the scand to?

O Scandio is a fundamental component in RF (radio frequency) modules, used in smartphones, 5G base stations and Wi-Fi 6 and 7 devices. Its application occurs in the form of scandal aluminum nitride (SCALN), which improves the efficiency of essential acoustic filters for high frequency communication.

Although necessary in small quantities per wafer, its absence can compromise the entire manufacturing process.

Already The discretion is indispensable in the production of hard drives and electric vehicles. It is added to black-fierce neodymium magnets to increase thermal resistance, a critical feature in rigid discs and reading coils.

The element is also used in MRAM memories, radiation resistant devices and even nuclear reactors.

Scanning and dysprosium scarcity is not limited to the chip industry, but threatens strategic sectors such as telecommunications, defense and energy

New layer of restrictions

This is the third stage of a broader Beijing plane to control its influence on the high -tech global chain. The previous rounds had already restricted elements such as Galio, Germanium, Tungsten, Indian and Antimony, all with applications in the production of advanced chips.

In the case of Germaniumfor example, its tensioned silicon use is critical for the manufacture of high performance chips, such as those produced by Intel and TSMC. Already the Gallium It is vital for radar devices, infrared sensors and satellite communication.

The current expansion also reaches Gadolínio, Térbio, Irbio, Lutecio e Samaria – All with specific applications and difficult to replace without impact on costs or performance.

A built advantage

Despite their name, the “rare lands” are relatively abundant in the earth’s crust. Chinese supremacy in this market, in fact, comes from the industrial capacity to extract, process and refine these minerals economically and efficiently. There are indications that the Chinese government subsidizes this sector, making competition unfeasible in other parts of the world.

With the strategic use of restrictions, Beijing may be making room for new players to enter the market, especially companies outside China that now see a lucrative opportunity to supply this global gap.

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What can happen?

At this time, the international community closely observes China’s next movements. Controlled climbing policy suggests that new restriction rounds should emerge, aiming at increasingly specific and crucial materials.

At the same time, there is an understanding that the Chinese government does not want to collapse the entire global production chain on which it also depends.

Meanwhile, companies in other countries should accelerate projects for exploration, mining and refinement of rare lands, seeking to reduce their vulnerability in the face of Beijing’s decisions.

Source: Ministry of Commerce of the Popular Republic of China