China Prepares Export Controls on Gallium and Germanium... "Semiconductor Production in Korea and Japan in Emergency"

WSJ Focuses on South Korea-Japan Reactions and Measures
Europe Also Busy Responding

China has begun preparations for the export control measures on gallium and germanium, which it announced will take effect from the 1st of next month.

Gallium and germanium are materials used in semiconductors for communication and military equipment. Since China is known to virtually monopolize their production and supply, the full-scale export controls are expected to cause significant disruptions in related industries.

The American daily The Wall Street Journal (WSJ) reported on the 5th (local time) that South Korea and Japan, major semiconductor producers, are uneasy as China moves to control exports of gallium and germanium.

The outlet introduced experts' analysis that "China's move appears to target countries such as the United States, South Korea, and Japan, which have restricted exports of advanced semiconductors and related technologies to China," and reported that the governments of South Korea and Japan have begun preparing countermeasures. It also stated that the South Korean government held an emergency meeting the previous day to assess the impact of China's gallium and germanium export restrictions and decided to pursue diversification of key semiconductor raw material supply chains.

During the emergency meeting, Ju Young-jun, Director of Industrial Policy at the Ministry of Trade, Industry and Energy, was quoted saying, "The short-term impact seems limited, but it is unclear how long China's export controls will continue, and the possibility of expansion to other items cannot be ruled out." WSJ also reported that the Japanese government is examining the potential effects of China's measures.

China's move is interpreted as a retaliatory measure against the West, including the United States, which has restricted exports of key semiconductor equipment and technology to China. The United States and European countries could suffer significant damage from China's measures, as many companies in these countries specialize in semiconductors for automobiles or communication devices using gallium nitride compounds. On the other hand, South Korea, which mainly produces memory semiconductors, may be relatively less affected, explained Professor Ahn Jin-ho of Hanyang University to WSJ.

Europe is also actively working on countermeasures. On the 30th of last month, the Netherlands announced new regulations regarding government approval for exports by its largest company, semiconductor equipment maker ASML, strengthening export controls on semiconductor equipment to China. The European Union (EU) Commission urged China, stating, "Gallium and germanium are essential and very important in our industry and strategic sectors," and called on China to "establish trade policies based on 'clear security considerations' under the World Trade Organization (WTO)."

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