Since the 1st of this month, China has formally implemented export controls on gallium and germanium, the key metals needed for semiconductor production, and the outside world is paying close attention to the actual impact of the control order after it takes effect, and Korean media observers said that this or "shake" the Korean semiconductor industry.

Yonhap News Agency said on the 1st that after China implemented export controls, the South Korean government and corresponding industries immediately inspected all aspects of the domestic supply chain. According to South Korea's "Chosun Ilbo" reported on the 2nd, the Ministry of Trade, Industry and Energy of South Korea held a meeting on gallium and germanium supply chain inspection on the 1st, attended by industry associations such as Semiconductor Association and Display Association, as well as the supply chain center for materials, parts and equipment, rare Metals Center and mine damage Mining Corporation.

According to the report, in order to stabilize the key mineral supply chain with a high degree of external dependence, the above industrial institutions will establish a supply chain consultation mechanism, share information such as global supply and demand trends, investigate demand and purchase reserve minerals, and work together to promote the research and development of resource regeneration and alternative technologies. The Korean government has also begun to prepare for the possibility of prolonged or expanded export controls by China. "We are focusing on companies that have a large share of imports from China," said an official at the Korean Ministry of Trade and Energy.

China is shaking Korean Semiconductors with Germanium, the Korea Economy reported recently, saying that China's export controls on gallium and germanium are expected to have a significant impact on the Korean semiconductor industry. The report mentioned that China's gallium production accounts for about 80% of the world's total production, germanium production accounts for about 60% of the world's production, the former is the future semiconductor research and development and OLED display must use materials, the latter is used in the semiconductor industry key gas production.

South Korea's "Central Daily" said on July 30 that since the announcement of the Chinese government in early July, the price of gallium and germanium has risen significantly in the international market. South Korea's Gwanghae Mining Corporation data show that as of July 28, the price of gallium per kilogram was 433,000 won (about 2375 yuan), up nearly 20% from the end of June; The price of germanium per kilogram rose to about 1.22 million won (about 6850 yuan), an increase of about 4%.

In addition, the market for major minerals and metals has also fluctuated recently. According to the report, the most representative is iron ore, which is considered as "industrial rice" and other essential iron ore, the price of iron ore imported from China rose from 100 dollars per ton at the end of May this year to 115.52 dollars. Battery material nickel prices fell to less than $20,000 per ton at the end of June, but quickly rebounded to $21,395 per ton on July 27. Prices of copper, zinc, and tin have also been on the rise for the past month.

It is reported that the Korean government holds 40 days of gallium inventory, display companies hold six months to one year of inventory, and the Ministry of Industry is considering adding germanium as a reserve mineral. Some analysts believe that gallium and germanium are not used much in semiconductor production, and alternative suppliers have been found from Australia and other places, so the control order will not have much impact on South Korea in the short term, but it will still have a greater impact on South Korea in the long run.

Cho Eun-gyo, an associate researcher at the Korea Institute of Industrial Research, said that Korea is highly dependent on China for core raw materials for cutting-edge industries such as semiconductors and batteries. Industry sources said that if the export control is extended, the development of semiconductor technology may be delayed in the future. Joongang Ilbo said that if the prices of related materials continue to rise in the future, the impact on domestic industries will become more and more serious.

In addition, the Korean semiconductor industry is worried that if the U.S.-China relations continue to be strained, China's export control measures on rare metals may be extended for a long time and even extend to military minerals such as titanium, tungsten and rare earth. The Korea Industrial Research Institute released a report on the 2nd that China's restrictions on the export of these two metals are not so simple as responding to the United States' suppression of China, and China's ultimate goal may be to develop a new generation of semiconductor industry based on gallium nitride and ultimately win semiconductor competition. "Korea Economy" mentioned that the British "Economist" previously predicted that although the United States is building a rare earth supply chain with Allies, "but at least until 2030, the supply of various minerals will face shortages."