Professional Insight: China's Export Ban on Gallium and Its Impact on the Global Tech Industry

The Chinese government’s recent decision to restrict the export of gallium (镓) and other critical raw materials has sent ripples through various high-tech industries worldwide. This move is particularly impactful because China controls over 90% of the global supply of gallium, a material essential in the production of semiconductors, high-performance RF power amplifiers, and various components critical to the drone, telecommunication, and renewable energy sectors.

Key Impacts of the Ban

1. Semiconductor and Electronics Supply Chains: Gallium is a fundamental material in the manufacture of gallium nitride (GaN) and gallium arsenide (GaAs), which are used in RF power amplifiers, LEDs, solar cells, and radar systems. With China's export restrictions, global manufacturers may face significant delays and increased costs in acquiring these materials.
2. Disruption in Drone and Defense Industries: Gallium-based semiconductors are pivotal in drone communications and low-light cameras, as well as radar systems. The ban may slow down the production of these critical components, especially for companies that rely on these materials for high-tech drone applications and security technologies.
3. Global Supply Chain Reconfiguration: Countries that heavily rely on China's supply of gallium, such as those in Europe, the U.S., and Japan, are now exploring alternatives. However, it will take time to develop domestic sources or alternative suppliers, leaving a potential supply gap that could last 2-5 years.

Opportunities for Innovation and Strategic Partnerships

While the ban poses challenges, it also opens doors for innovation and new supply chains:

• Domestic and Alternative Supply: Companies in Japan, South Korea, and North America are investing in alternative sources of gallium or exploring new materials that could replace gallium in high-tech applications.
• Recycling and Recovery Technologies: The ban may accelerate the development of recycling technologies to recover gallium from electronic waste and reduce dependency on primary sources.

How Shenzhen JingWei Technology is Adapting

At Shenzhen JingWei Technology Co., Ltd., we are actively monitoring this evolving landscape and working with our clients to ensure a stable supply of critical components. By leveraging alternative materials, innovative design approaches, and fostering partnerships across the global supply chain, we are committed to maintaining uninterrupted delivery of RF power amplifiers, low-light cameras, and fiber optic solutions for the drone and security sectors.As this situation unfolds, we will continue to provide timely updates and adapt our strategies to ensure our clients' success in these rapidly changing markets.