TSMC and some other chip makers obtain these materials in various forms, primarily from suppliers outside China, so China’s restrictions on gallium and germanium exports have a direct impact on their business. I didn’t expect it. On the other hand, Chinese companies mainly export gallium and germanium ores, and Chinese companies that produce GaN and GaAs chips also use advanced waders and gases, which may be subject to export restrictions.
“As a result of the assessment, we do not expect the export restrictions on the raw materials gallium and germanium to have a direct impact on TSMC’s production,” TSMC said in a statement. Reuters To read. “We will continue to monitor the situation closely.”
Taiwan-based Win Semiconductor, a contract manufacturer of GaN and GaAs chips, and Visual Photonics Epitaxy, which produces GaAs and InGaAs wafers, purchase only a limited number of substrates from China, replacing substrates with other sources. He told the news agency that he got it from Participants from companies based in Germany, Japan and the US will be directly affected by the regulations as a result. Meanwhile, suppliers will be severely affected as China controls more than 90% of global gallium and germanium production.
But the problem may be less acute, even for wafer suppliers who buy raw gallium and germanium from China, reports say. Digi Times According to industry experts. These export sanctions do not imply a direct ban on production and export activities. Therefore, the full supply chain can still operate, albeit with the additional requirement of obtaining export approval for certain markets. That said, while it may become increasingly difficult for companies to obtain raw materials, it is unlikely to become impossible.
According to the company, when it comes to chip production, gallium and germanium are used in a refined form, and the refinement is mainly controlled by American and Japanese companies. Digi Times report. New Chinese export sanctions on ore could affect these suppliers unless other sources of ore can be found quickly.
If China bans the sale of gallium and germanium ores to these suppliers, two scenarios could play out. First, regulations will prevent China from exporting refined gallium and germanium, potentially disrupting the global GaAs and GaN industries. Alternatively, China could improve its refining technology, essentially putting rivals out of business, effectively strengthening its near-monopoly.
Either way, foreign suppliers of gallium- and germanium-based products will need to review inventories and their reliance on Chinese mineral resources, experts say. On the other hand, non-Chinese gallium and germanium will be more expensive than those from the People’s Republic.
