China tightens export controls for materials used to make artificial intelligence chips

China plans to impose more controls on the export of metals used in the manufacture of artificial intelligence chips. The Ministry of Commerce of China has issued a statement saying that these controls are carried out in order to protect the national security of this country and the export of some products related to gallium and germanium will need the approval of the Chinese government.

These controls are supposed to be implemented from August 1 this year and include eight products related to gallium, which are: gallium antimonide, gallium arsenide, gallium metal, gallium nitride, gallium oxide, gallium phosphide, gallium selenide, and indium gallium arsenide. Six products related to germanium are included in these controls, which are: germanium dioxide, germanium growth medium, germanium ingot, germanium metal, germanium tetrachloride and germanium zinc phosphide.

Gallium as a metal material is mainly used in electronic and semiconductor industries and it is also used in the manufacture of LEDs. Germanium is also used in the manufacturing process of semiconductors, along with solid state electronic systems and optical fiber.

According to the European Commission’s 2023 report, the world supply sources of Germanium are mainly located in China, and more than 80% of the world’s gallium is supplied through China. In 2022, the US imposed sanctions on China that prevented Chinese companies from accessing advanced semiconductor technologies. These sanctions also included some advanced Nvidia processors.

Of course, some Nvidia chips such as A800 and H800 are already available in the Chinese market, but these processors are only used in small-scale artificial intelligence. Apparently, Chinese companies are looking for access to more powerful chips in the field of artificial intelligence.

Apparently, the US wants to impose more restrictions on the export of advanced artificial intelligence chips to China. With the boom in artificial intelligence in recent months, the value of Nvidia’s chips has increased, now we have to wait and see what the company will do with China.

Source: Cointelegraph