China tightens control over rare metals used in chip manufacturing

Authorities in China are increasing their control over the country’s rare metal exports. More specifically, the Asian nation will increase scrutiny on resources such as gallium, germanium and antimony, used in the manufacture of chips and semiconductors.

The information comes from the New York Times, through Tom’s Hardware. According to the traditional journalistic outlet, China began increasing control of rare metals at the beginning of this month, on the first of October. First the greater restriction began in gallium and germanium and now it extends to antimony as well.

According to the report, China started to require its producers that export metals of this type to record detailed reports on the use of resources throughout the supply chain. Furthermore, the country now considers information about mining and refining these metals a state secret. According to the publication, two people were arrested for leaking industry data, but no details are provided on this matter.

To further extend its control over metals, Chinese government officials have reportedly taken steps to acquire foreign refineries as well. The NYT reports that Neo Performance Materials, a Canadian company, recently sold 86% of its shares to Shenghe Resources, a Chinese company that would be linked to the State. This acquisition expands China’s control over dysprosium, which is used in the manufacture of advanced capacitors. The country is responsible for producing 99.9% of dysprosium worldwide.

Sanctions war between US and China affects global chip market

Evidently, a greater restriction on the export of metals needed to manufacture chips should result in an increase in their prices, and that of any product that uses the resources.

China’s move to increase control over these commodities appears to be a direct response to the trade sanctions it has been facing from the US. While the country does not have advanced processor manufacturing technologies, in the area of ​​mining and refining these minerals, they are the ones ahead.

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US-allied countries, such as Australia and Belgium, have invested in refineries, and Uncle Sam’s own land already has projects underway. However, China has cutting-edge technology in this area, which reduces its production costs and also offers purer final products than those from other countries. Furthermore, the country already has a tradition of training specialists in its universities, with a large supply of specialized labor in the area.