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Juan Carlos López
Senior WriterAn engineer by training. A science and tech journalist by passion, vocation, and conviction. I've been writing professionally for over two decades, and I suspect I still have a long way to go. At Xataka, I write about many topics, but I mainly enjoy covering nuclear fusion, quantum physics, quantum computers, microprocessors, and TVs.
Alba Mora
WriterAn established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.
On Dec. 2, the U.S. imposed one of the most aggressive sanctions packages against China. Former President Joe Biden’s administration added 140 more companies to its blacklist. The ban primarily targets Chinese entities that design and produce lithography equipment for advanced semiconductor manufacturing. This has likely had a significant impact on the Chinese chip industry.
As expected, China responded swiftly. Just one day later, the Asian country announced a ban on the export of critical minerals to the U.S. These restrictions include three essential chemical elements for the semiconductor industry. They also target materials known for their extreme hardness, including gallium, germanium, and antimony, which can also be used for military applications.
According to Japan, Recent Restrictions Will Impact the Supply Chains of Chips and Batteries
China currently produces the world’s 59.2% of germanium, 48% of antimony, and a staggering 98.8% of gallium. Jack Bedder, co-founder of the consulting firm Project Blue, explains, “The move is a considerable escalation of tensions in supply chains where access to raw material units is already tight in the West.”
Meanwhile, Peter Arkell, chairman of China’s Global Mining Association, adds, “It comes as no surprise that China has responded to the increasing restrictions by American authorities, current and imminent, with its own restrictions on the supply of these strategic minerals.”
Japanese imports of gallium from China dropped by 85% between August 2023 and August 2024.
Several Japanese officials and executives in the semiconductor industry support Bedder’s viewpoint. According to the Financial Times, experts are warning the governments of the U.S., Japan, and their allies that China’s restrictions on the export of gallium and other strategic raw materials will significantly affect the semiconductor and battery supply chains.
Additionally, Japanese officials suspect that the Chinese government may compel them to report on all gallium-containing products exported from Japan to the U.S. Otherwise, the Xi Jinping administration could further tighten measures that have caused Japanese imports of gallium from China to drop by no less than 85% between August 2023 and August 2024.
Japanese companies are the largest consumers of gallium, germanium, and graphite, surpassing their counterparts in the U.S., Europe, Taiwan, and South Korea. If the Chinese government imposes stricter controls on gallium exports, it could impact the electric motors used in Tesla vehicles manufactured in Japan. It could also affect the gallium arsenide lasers produced by Broadcom and various chips integrated into Apple’s iPhones.
This situation underscores an important reality: No industrialized nation can remain uninvolved in the economic and trade conflict between the U.S. and China.
Image | Carol Jeng
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