China to tighten export controls for materials used to make AI chips

The Chinese government has announced plans to introduce export controls on metals used primarily to manufacture semiconductors used in the development of artificial intelligence (AI) systems.

On July 3, the Chinese Ministry of Commerce issued a joint statement with the General Administration of Customs stating that the controls were aimed at protecting the interests of national security and that government-issued licenses for the export of specific gallium and germanium products were prohibited. will be required.

The controls begin on August 1 and include eight gallium-related products: gallium antimonide, gallium arsenide, gallium metal, gallium nitride, gallium oxide, gallium phosphide, gallium selenide and indium gallium arsenide.

They also cover six germanium products: germanium dioxide, germanium epitaxial growth substrate, germanium ingot, germanium metal, germanium tetrachloride and zinc germanium phosphide.

Gallium is a metal often found in electronics, with transistors and lasers being the most prominent use case for semiconductors. It can also be used in making LEDs. Germanium is used in solid-state electronics and fiber optic systems as well as in the manufacture of semiconductors.

The statement said that whoever exports such products without proper permission or in excess quantity will be punished.

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as of 2023 reports According to the European Commission and the European Association of Critical Raw Materials Alliance (CRMA), “the global supply of germanium is still highly concentrated in China.” CRMA has also reported that more than 80% of the world’s gallium comes from China.

In October 2022, the U.S. Sanctions were imposed that denied Chinese developers access to the most advanced semiconductors on the market. These include Nvidia’s A100 chips and the latest version, the H100.

The Nvidia chips A800 and H800 are currently available in the Chinese market. However, due to the low technology, they can only support small-scale AI models. Chinese companies are said to be looking for solutions to the lack of access.

Currently, officials in the US are considering the possibility of additional restrictions on the already imposed limits on exports of high-end AI chips needed to build powerful systems.

Since the AI ​​boom, Nvidia, a major developer of iconic semiconductors, has seen its chip prices skyrocket. Cointelegraph reached out to Nvidia for comment on the recent developments in China, however they did not respond immediately.

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