China banned the export of gallium, antimony and germanium to the United States earlier this month in retaliation for the country’s restrictions on its exports. All of which are raw materials needed by the semiconductor, battery and weapons technology industries. According to a Bloomberg report, gallium prices have now reached their highest level since 2011.
A week after the restrictions were imposed, gallium prices reached $595 (~RM 2645) per kilogram. This was driven by bulk buying by supply chains that wanted to ensure gallium could be purchased before prices rose further. China controls 94% of the global gallium market and their actions will have an impact on the semiconductor industry through 2025.
Alternative sources exist but will take years to meet market needs. The various restrictions imposed by the United States on China are intended to prevent China from becoming a technological superpower in the near term.