On Dec. 3, 2024, China’s Ministry of Commerce implemented export bans on key semiconductor materials, including gallium and germanium, to the US. While these minerals had already been subject to existing export restrictions introduced in July 2023, this is the first time China has specifically targeted the US.
To date, US legislation has focused on strengthening the downstream part of the semiconductor supply chain, leaving US technologies vulnerable to upstream supply chain disruption.US-China tensions centered on semiconductors and critical minerals are apt to continue rising as each government deploys the levers at its disposal, including restrictions on the upstream supply of materials key to the chip sector.
Despite the Trump administration’s opposition to many of the Biden administration’s policies, measures targeting critical minerals supply chains, particularly onshoring efforts, will remain front and center. However, the extent and scope of changes to be rolled out in the coming months is still unknown.
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