China’s planned export controls on gallium have caused a frenzy among clients of Freiberger Compound Materials. The company, known as the world’s largest gallium buyer, heavily depends on Chinese suppliers for its gallium needs.
Freiberger uses gallium to produce specialty semiconductor wafers for mobile phone radio signal amplifiers and optical electronics. However, China’s unexpected announcement to control gallium and germanium product exports from August 1 has placed Freiberger in the midst of turmoil.
The export control announcement has led Freiberger’s clients to stockpile gallium wafers, fearing shortages and price increases. In response, Freiberger has experienced a surge in demand for its wafers and is working to increase production to meet growing needs.
China’s export controls on gallium are seen as a retaliatory measure against the United States and its allies, who have imposed sanctions on China’s technology sector. These controls are expected to significantly impact the global semiconductor industry, which relies on gallium for various applications.
The implementation of export controls and their long-term effects on the global gallium market remain uncertain. Nevertheless, the current situation has instilled a sense of uncertainty and anxiety among both gallium buyers and sellers.
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