"Limited Short-Term Impact of China's Gallium and Germanium Export Controls"

Government Closely Monitors Supply and Demand Trends... Checks Impact on Supply Chain

As China prepares to implement export control measures on gallium and germanium, materials used in semiconductors and displays, starting from the 1st of next month, the South Korean government stated that the short-term supply impact is expected to be limited.

On the 4th, the Ministry of Trade, Industry and Energy held an 'Industrial Supply Chain Inspection Meeting' at the Korea Chamber of Commerce and Industry, chaired by Ju Young-jun, Director General of Industrial Policy. The meeting reviewed the domestic supply chain impact following China's announcement the previous day regarding export controls on gallium and germanium (effective August 1). Semiconductor and display-related companies, associations, the Materials, Parts, and Equipment Industry Supply Chain Center (KOTRA, Korea International Trade Association, Korea Machinery Industry Promotion Association), and the Korea Mining Industry Promotion Corporation participated in discussions on supply status and response measures.

The government and industry agreed that even if China enforces export controls on gallium and germanium from the 1st of next month, the short-term supply impact on South Korean industries will be limited.

Gallium is mainly used for research purposes in future semiconductor development, so it is analyzed that there will be little direct impact on semiconductor production. In the display sector, although gallium is used as an OLED material, imports are currently possible from countries other than China, such as the United States, making substitution feasible. Additionally, sufficient inventory has been secured, allowing for adequate response.

Regarding germanium, which is used in the production of gases for semiconductor processes, the industry is using alternative gases and has the possibility to diversify import sources. Furthermore, it was confirmed that the Korea Mining Industry Promotion Corporation currently holds a stockpile of gallium sufficient for about 40 days. The Ministry of Trade, Industry and Energy plans to further inspect and respond to the impact on industries and items related to gallium and germanium, including optical fibers, beyond the semiconductor and display sectors.

Ju Young-jun, Director General of Industrial Policy, stated, "The short-term supply impact of this measure is limited," but added, "However, it is uncertain how long China's export controls will continue, and the possibility of expansion to other items cannot be ruled out. We will closely monitor China's trends and respond swiftly."

This content was produced with the assistance of AI translation services.