The world’s industries are alarmed by China’s recent restriction of essential minerals, including gallium, germanium, and antimony among their members. Including these critical minerals in high-end and industrial applications such as semiconductor manufacturing, renewable energy technologies, and defense systems has become crucial.
Gallium is vital for developing advanced semiconductor devices, germanium is essential in fiber optics and infrared technologies, and antimony is integral to flame retardants and batteries.
These export restrictions are expected to take their toll on global supply chains. They will leave no other option but to force companies to seek alternatives from different parts of the world or invest in new technologies. This step is also expected to hasten the development of recycling technologies, mining at home, and other avenues to ensure that production does not sway worldwide.
In this blog, we will discuss how the ban affects over 30 global companies and the products made from these minerals by their manufacturers.
Intel Corporation
Products: High Milling-base Semiconductor Products.
Impact: Microprocessor manufacturing, which is subsequently incorporated into personal computers, data centers, and high-performance computer systems, heavily utilizes gallium and germanium at Intel.
On one side, gallium is a building block in developing high-speed transistors. On the other is germanium for optoelectronics and compound semiconductors.
Their export restrictions on these minerals could interrupt production, forcing Intel to find alternative materials and adjust the design of their semiconductors without sacrificing performance and technological advancement.
Lockheed Martin
Product: Radar systems and missile guidance.
Impact: Lockheed Martin, a prominent defense contractor, uses gallium arsenide (GaAs) in all its defense applications, particularly radar systems and missile guidance technology.
GaAs are well known for their performance in high-frequency applications and are thus considered a requirement for producing highly sensitive radar systems for military purposes.
With export restrictions on gallium and its compounds, the absence of gallium may hinder Lockheed Martin’s availability of this source, which may cause delays or expense increases in producing these critical defense technologies.
Raytheon Technologies
Product: Infrared Sensors and Communication Systems.
Impact: Raytheon Technologies is a top-ranked military and defense infrared sensors and communication systems solution provider.
Glasses made on germanium are pertinent to the lenses employed in night vision systems, thermal imaging technology, and other defense equipment. Such high-end optics use germanium’s uniqueness and produce high precision and performance optics.
As a result of the recent export bans on germanium, there is likely to be a need for more supply, slowing down the production and development of these systems for national security purposes.
Tesla Inc.
Product: Electric vehicles (EVs) and battery systems.
Impact: Gallium will support the construction of effective inverters and quick charging technologies in Tesla’s electric vehicles (EVs) and energy storage systems.
The outstanding characteristics of gallium will further improve the output performance of power electronics and, hence, the efficiency of Tesla’s high-end products.
The gallium export ban can become a critical barrier for manufacturing parts of these essentials, postponing the launch of new EV models and energy systems.
Being the frontrunner in perfecting sustainable transport, disruption in gallium supply would impact Tesla’s global manufacturing abilities.
First Solar
Product: Solar panels.
Impact: First Solar produces thin-film photovoltaic solar modules that are noted for their ability to convert sunlight into electricity with high efficiency.
The company bases its solar-cell production technology on germanium, which includes advanced solar cells for higher energy conversion rates.
Germanium improves photovoltaic performance as it enhances the ability of solar panels to catch sunlight in low-light conditions.
Thus, it is a prime material for advanced solar technology. The export restrictions on germanium may now cause a significant disruption in the entire production process, affecting the availability of First Solar to meet the increasing global demands for energy.
Apple Inc.
Products: High-speed charging devices.
Impact: Apple depends entirely on gallium nitride to manufacture fast chargers for devices such as adapters and charging devices for iPhones, iPads, and MacBooks.
The use of GaN contributes to energy conversion efficiency, which significantly lowers the internal operating temperature while improving energy usage efficiency compared with chargers that use conventional silicon-based devices.
The company may run supply chain challenges because of China’s recent ban on gallium exports, which will primarily affect the industry’s efforts to meet the growing demand for fast-charging devices in consumer electronics.
Cree Inc.
Product: Light Light-emitting diode lighting and power semiconductors.
Impact: Cree Inc. is an energy-efficient LED lighting and power semiconductor manufacturing company that depends on gallium nitride (GaN).
This material is integral to light- and power-converting systems for producing high-efficiency light and power applications, including electric vehicles and industrial machinery.
A recent ban on gallium exports from China may interfere with Cree’s access to this critical supply, which could hinder its maintenance of producing avant-garde LEDs and power semiconductor components essential for its energy-efficient technologies.
AMD
Product: Advanced semiconductors and GPUs
Impact: AMD uses cutting-edge semiconductor technology, which includes gallium and germanium elements, for denser and more effective configurations.
These are the key ingredients for high-yield generation processors, graphics processors for gaming and artificial intelligence, and those programmed for data centers.
China’s tightened restrictions on gallium and germanium exports may impact AMD’s supply chain with eventual production delays and costs.
Therefore, the company must look for alternative strategies to procure these materials.
Boeing
Product: Satellite and defense systems.
Impact: Boeing uses germanium in satellite solar cells and infrared technologies essential to its aerospace and defense systems. High-efficiency applications of germanium are necessary to power its satellites and to maintain space communications and imaging.
Moreover, gallium-based semiconductors are helpful for advanced radar and defense electronics.
Thus, the export ban from China severely hinders the timelines within which Boeing produces; thereby, it is forced towards any possible sources or innovative substitutes to retain its edge in aerospace and defense technologies.
Broadcom
Product: RF amplifiers and connectivity devices.
Impact: Broadcom Relies Heavily on Gallium Compounds, including gallium arsenide (GaAs), on Their RF amplifiers and other High-performance connectivity devices, which is one key feature of modern telecommunications, including cellular infrastructure, such as 5G and Wi-Fi solutions.
The components guarantee high speeds and energy efficiency in most Broadcom chipsets.
The restrictions on the exportation of gallium by China may hurry the disruption of the already existing supply chains of Broadcom, thus leading the company to try possible alternatives or sources for it so that it can maintain a competitive advantage in the technology industry.
Nvidia
Product: Producing AI accelerators and GPUs.
Impact: Nvidia’s high-performance GPUs and AI accelerators depend on advanced materials such as germanium to power data centers, gaming, and rapidly emerging autonomous technologies.
Germanium also plays a vital role in optoelectronic devices and high-efficiency transistors because such devices must ensure seamless processing power for AI and machine learning workloads.
The challenges that Chinese restrictions may impose on the critical minerals trade may involve looking for alternative sources or innovations supporting Nvidia’s continued technology leadership.
HP Inc.
Product: Laptops and very high-competence computing systems.
Impact: HP includes very advanced semiconductors and display technology within its laptops and computing systems. Gallium and germanium are enhancing the efficiency of processors and the quality of displays.
Additionally, the role of germanium in fiber optics improves the data transfer speed in high-performance computing. In contrast, gallium-based components primarily enhance energy efficiency in the power management of devices.
Due to China’s export restrictions, there is a possibility of supply chain disruption in these critical materials for HP, urging the company to discover some alternative sourcing and invest in sustainable production solutions to be technologically competitive.
GE Renewable Energy
Product: Turbine systems leverage gallium-based semiconductors.
Impact: GE Renewable Energy has used gallium-based semiconductors in wind turbines to increase power conversion efficiency and improve system reliability.
Specifically, gallium nitride (GaN) semiconductors can lower energy loss in turbine controllers and converters. These materials lead to superior performance in renewable energy systems.
Bans on exporting gallium would threaten production and innovation, so GE might have to consider alternative sourcing strategies and material innovations to maintain its lead in renewable energy.
ON Semiconductor
Product: Automotive sensors and power modules.
Impact: For ON Semiconductor, gallium-based technologies have made it possible to manufacture small, highly efficient modules and sensors for automotive applications.
GaN material employs the design of energy-efficient systems with advanced driver assistance systems (ADAS) and electric vehicle (EV) powertrain capacities, as well as fast-charging applications.
These tiny GaN components can reflect better design flexibility and performance in automotive systems.
Currently, China’s export restrictions on gallium are crossing hurdles in the supply chain and possibly affecting the production timelines of ON Semiconductor and catalyzing inspirations for alternative materials sourcing.
IBM
Product: Quantum computing chips.
Impact: Germanium is an essential additive in IBM’s quantum computing chip to improve the stability of qubits, the building block of quantum computing, which is the key to the performance and coherence of quantum processors.
As quantum computers evolve, Germanium from China is expected to affect the production of advanced chips because of its export ban.
Therefore, IBM would find it challenging to obtain enough supplies of Germanium, which could slow down quantum technology advancement, or look for alternative methods and materials to keep their quantum computing systems stable.
General Dynamics
Product: Advanced military communications and sensors.
Impact: General Dynamics has utilized gallium arsenide in military communications and sensor systems where high-performance, secure communications are required for defense applications.
A material with properties well suited for enabling high-frequency and high-speed operations, which makes it essential for secure communications technologies, gallium arsenide has been affected.
The new export ban on gallium may very well restrict General Dynamics’ capabilities in delivering critical defense products on time, creating possibilities of either slipping schedules or looking toward other materials; this would affect the capabilities of the entire global defense industry in communications.
GlobalFoundries
Product: Semiconductor manufacturing.
Impact: Globally, GlobalFoundries is one of the leading semiconductor manufacturers in the USA.
They mainly make chips for automotive, aerospace, and consumer electronics, a serious business where they employ gallium arsenide and other advanced materials to enrich their high-performance RF and power amplifier applications.
These applications have become critical for 5G and IoT systems affected by gallium export restrictions.
Disruption to their supply chain may cause their company to start sourcing alternative materials or suppliers, increasing costs and creating delays in developing innovations on crucial bases.
Lattice Semiconductor
Product: Low-power FPGAs.
Impact: Using gallium materials, Lattice Semiconductor has introduced compact and low-power field-programmable gate arrays (FPGAs) for IoT, AI, and industrial automation.
With the gallium material exporters from China, Lattice’s production progress towards developing high-performance devices would be reduced, incurring even higher costs or delaying the launch of these products.
The company could look for alternative sourcing strategies to maintain its edge by providing high-efficiency power solutions for tomorrow’s technologies.
Skyworks Solutions
Product: RF and mobile communication components.
Impact: Different kinds of mobile electronic devices, wireless infrastructure, and Internet of Things applications all find their solutions with Skyworks Solutions, a leading player in the RF technology area.
GaAs and GaN are the primary materials for high-frequency amplification and filtration. These materials are important because they enable energy efficiency and high-speed data transfer.
The export ban on gallium from China is a huge challenge to Skyworks’ supply chain.
Analog Devices
Product: Processing of signals and power management.
Impact: Analog Devices is a major company in signal processing technologies for industrial, automotive, and healthcare applications.
Their semiconductors rely on gallium-based compounds for superior performance and energy efficiency and are incorporated in numerous systems, including power management systems and RF applications.
The recently introduced restrictions on gallium exports in China will disturb their supply line and pressure the investment in alternative materials or recycling technologies.
These changes will increase production costs and put the launch of new products for valuable industries on hold.
Lam Research
Product: Semiconductor fabrication Equipment.
Impact: Lam Research designs and manufactures advanced equipment in the various fields of semiconductor fabrication, including etching and deposition tools.
On the other hand, this makes gallium-based materials crucial since a lot of the precision of their equipment relies on them, especially when it comes to next-generation chips.
China’s export restrictions on gallium have become a major issue for Lam Research regarding providing its clients with cutting-edge tools.
Thus, the company will need more support in innovation and higher costs when looking for alternative suppliers or investing in material substitutions.
Marvell Technology Group
Product: Data infrastructure chips.
Impact: Marvell makes high-performance chips for data center operations, cloud-storage systems, and enterprise networks.
Gallium compounds are essential to their RF and data-processing chips and thus ensure efficient and rapid data handling.
Export bans on gallium might delay their production schedules, resulting in increased costs and ultimately affecting their contribution toward technological progress in data infrastructure. This calamity can be reduced with the help of Marvell.
Advanced Energy Industries
Product: Power conversion technologies.
Impact: Advanced Energy Industries sells high-efficiency power conversion systems for industrial, medical, and energy applications.
Gallium nitride (GaN) is one important material in their power modules, enabling superior energy economy and performance.
Restrictions on gallium exports could disrupt the supply chain and drive the company to look for alternative materials or redesign their systems; that would slow innovation and put more costs into ensuring they would meet the ever-growing demand for energy-efficient solutions.
Amkor Technology
Product: Semiconductor packaging and testing.
Impact: Amkor Technology became the world leader in semiconductor packaging and testing solutions.
Indeed, gallium and germanium are used in finely packaged processes for advanced chips in the commercial and automotive sectors.
Export restrictions from China on these materials will likely disrupt Amkor’s operations. They may even lead to delays in production and higher costs because the company will have to look for alternative materials to sustain its lead in semiconductor packaging or expand domestic sourcing.
Western Digital
Product: Solutions for data storage.
Impact: Western Digital manufactures advanced data storage devices, including solid-state and hard drives.
It relies on germanium as a critical raw material in its optical communication technologies for high-speed data transfer and storage.
Export restrictions on germanium from China can disturb Western Digital’s supply chain, increasing production costs and delays.
The company will probably study alternative sources or invest in recycling technologies to stabilize this key raw material.
Seagate Technology
Product: Hard disk drives.
Impact: Seagate Technology is one of the top suppliers of data storage solutions worldwide. Its high efficiency and excellent storage devices depend on gallium materials, which are important in data transfer’s energy efficiency and speed.
Export restrictions on gallium will affect Seagate’s production planning and supply chain and may increase the company’s costs.
The company will, therefore, explore investing in alternative sourcing strategies or partnerships with local suppliers to maintain its leadership position in data storage.
Microchip Technology
Product: Microcontrollers and embedded solutions.
Impact: Microchip Technology: Microcontrollers, analog devices, and memory solutions for automotive, aerospace, and industrial markets.
Gallium and germanium are essential materials for their systems, which perform top-notch. Restrictions on the exports of these minerals affect supply and, therefore, mean delays and high costs for doing business.
A possible alternative for Microchip is to explore other materials that can replace gallium and germanium or even invest in domestic sourcing.
Corning Inc.
Product: Specialty glass and ceramics.
Impact: Corning is a leader in optical fiber and specialty glass products. Germanium is a critical source in their fiber optics, enabling high-speed communication networks.
The export restriction on germanium from China may disrupt Corning’s production and supply chain, potentially increasing costs.
This may require the company to look into alternative sources or consider recycling technology to stay relevant in its telecommunications market.
Maxim Integrated
Product: Analog and mixed-signal ICs.
Impact: Maxim Integrated manufactures analog and mixed-signal integrated circuits for automotive, industrial, and healthcare applications.
These circuits depend on gallium-based materials for their high-efficiency power management solutions.
Export restrictions on gallium may delay production and hinder the supply chain, forcing the company to find alternative materials or suppliers to sustain innovation and competitiveness.
Qualcomm
Product: Wireless technology and semiconductors.
Impact: Qualcomm developed 5G modems and RF systems using gallium-based components. These are important materials, as they support broadband delivery and power-efficient systems.
Exports from China would have affected Qualcomm’s supply chain and its ability to deliver the new generation of wireless.
Those investments should be made sooner toward sourcing elsewhere or building domestic capacity to meet such requirements.
Intel Foundry Services
Product: Custom silicon solutions.
Impact: Intel Foundry Services manufactures specialized chips for customers in diverse fields. Modern gallium technologies are used extensively in state-of-the-art semiconductor processes.
Notably, restrictions from China on the export of gallium may significantly impede the capability of fulfilling customer demands, leading to price increases and production delays.
Intel can mitigate these challenges by using other sourcing methods or investing in domestic production capacity.
Conclusion
Conclusively, China’s restrictions on the export of gallium, germanium, and antimony have caused tremors in a wide range of industries, including semiconductors, renewable energy, and even defense and consumer electronics markets.
From high-performance sources for AI, EVs, military systems, etc., companies like Intel, Tesla, Lockheed Martin, and First Solar require these minerals to avail themselves of such applications. Supply chain disruptions can inspire companies to seek alternative sourcing, develop recycling technologies, and invest in local production to alleviate the damage.
So far, these problems have caused production delays and new costs for companies, but they also spur innovations and resilience in various industries. The transition of companies adapting to this new environment can be a turning point in how critical minerals are sourced to achieve sustainable and stable global manufacturing ecosystems.
