COMPONENT AND COMPLIANCE JOB

RESTRICTIONS ON CHINA’S
GALLIUM AND GERMANIUM EXPORTS

DANNY NGUYEN
I. WHAT IS THE GALLIUM AND GERMANIUM

Germanium and gallium are metals that are not found naturally. They are instead usually found as a by-product of the
refineries of other metals. They are the important material to make the semiconductor component.
Germanium Gallium

Define Germanium is a silvery-white metal which is Gallium is a silvery metal and fellow soft which is is a by-
obtained as a by-product of zinc production product of processing bauxite and zinc ores.

Where use • Solar products and fiber optics • Audio frequency chips for mobile phones and satellite
• Military applications, such as night-vision communication.
goggles • Material in semiconductors
• Applications in space
Picture

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II. SITUATION OF EXPORT & PRODUCE GE- GA

Germanium Gallium  Who is the main providing Metal ?

China produces 60% of the world’s germanium and 80% of gallium.
also seeing increasing increased “at a rate of 7% per according to the Critical Raw Materials Alliance, an industry body.
demand year on average over the past
need for solar cells and 5G decades, much faster than Gallium arsenide is complex to produce, and only a few companies in
networks. most industrial metals. the world can do so. One is located in Europe, while the others are in
Japan and China, the CRM Alliance says.

Who else produces gallium and germanium?  The new situation :

After China, the United Kingdon, Russia, and the United States
are the primary suppliers of germanium, with some
additional production in Finland
China has announced its plans to restrict the export of gallium and
germanium. This step is being regarded as a retaliation to the US
decision to limit the export of state-of-the-art chips to China. Both
elements are used in computer chips, telecommunications, solar
panels and electric vehicles.

 Who be affected?
US , Japan, South Korea and some of EU Member States(Germany,
the Netherlands and France ) are big affected
Japan, South Korea are the largest importers of gallium and
germanium from China

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III. WHO WILL BE AFFECTED
Some of the Manufactures that may be affected by these new restrictions

LED Suppliers: Opto-couplers: Sensors/Encoders:

•Broadcom Inc. •Broadcom Inc. •Bourns, Inc.
•OSRAM Opto Semiconductors GmbH •On Semiconductor •Broadcom, Inc.
•ROHM Co., Ltd •Lite-On •Analog Devices
•LED Indication RF Amplifiers, Switches, Mixers:
•Colored LED Lighting. •Hittite Microwave
•Wolfspeed, Inc. •NXP
•LED Displays-Segment and Numeric •Analog Devices

Microcontrollers Oscillators (Notably Crystal Oscillators): Chip Resistors:

(MCUs)/Microprocessors (MPUs):
•Not very prevalent but certain
NXP MCUs/MPUs utilize
Germanium in solder ball in NXP
MCUS and MPUs
•Ecliptek Corp. • KOA Speer
•Transko Electronics, Inc.
•Crystal Oscillators
Some of the Manufactures are investigate their supply chain and will
update based on the situation of the global

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III. WHO WILL BE AFFECTED

While new restrictions add complexity to the supply chain process, their actual effect remains to be seen. China’s new
restrictions don’t prevent exporters from obtaining either element—they put a license on the process. And until
applications are submitted it’s too soon to say if there will be restrictions or rejections around that process.

 Microchip Technology (MCHP.O) said its

initial assessment is that there will not be a
material impact.
 Dutch-based, Nasdaq-listed chipmaker NXP
Semiconductors (NXPI.O) said it expected no
material impact on its business.

Please refer the below link to see update for some of the
Manufacture.
https://www.reuters.com/markets/commodities/companies-res
pond-chinas-curbs-gallium-germanium-exports-2023-07-06/

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III. UNIGEN AFFECTED AND WHAT THE ACTION ?

Unigen will be affected if this directive is still kept for a long time. Because some of the components we are
assembling from Broadcom, On-semi, and other Manufactures who have still not shared their announcement.
However, The manufactures are reviewing their supply chain and find the solution to keep their business trip

What dose Unigen do to keep the Production?

1. Review FMD to find out the part which is used the gallium and germanium.
2. Contact with MFR to confirm the situation affected by restrictions gallium and germanium
3. Find the cross component which is provide by the Manufactures who is not affected

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Thank You