TC Microchips Warns of Chip Supply Chain Disruption After China Bans Gallium Exports

TC Microchips, today raised an urgent alarm over the potential global ramifications following China's decision today to ban exports of gallium and germanium to the United States. These critical elements are essential for the production of advanced semiconductors, and their restricted availability threatens to destabilize the already precariously balanced global semiconductor supply chain.

China’s decision comes in retaliation to heightened U.S. restrictions on the export of advanced chips and chip-manufacturing technologies to China. The tit-for-tat measures have exacerbated tensions in the global technology sector and introduced new risks for semiconductor manufacturers, particularly those dependent on rare-earth elements sourced from China.

Gallium and germanium are indispensable in creating high-performance chips used in applications ranging from smartphones to aerospace systems. Industry analysts estimate that China supplies over 70% of the world’s gallium and germanium, leaving the semiconductor industry highly exposed to supply disruptions.

"TC Microchips strongly urges international stakeholders to address this situation with the urgency it demands,” said Luis Férnandez, CEO of TC Microchips. “A prolonged supply chain disruption could significantly hinder innovation, elevate production costs, and impact the availability of critical technologies worldwide.”

“The semiconductor industry is the backbone of modern technology and global economic growth,” Mr. Férnandez added. “Addressing this challenge collectively is imperative to safeguard progress and ensure stability in the global tech ecosystem.”

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To mitigate the impact of this supply constraint, TC Microchips is:
  • - Accelerating its research into alternative materials and production methods.
  • - Expanding partnerships with suppliers in non-China-based jurisdictions.
  • - Collaborating with governments and industry associations to advocate for diversified and resilient supply chains.


The company calls on global leaders to foster dialogue aimed at resolving the current trade and technology impasse while simultaneously investing in long-term strategies to diversify the sourcing and production of critical raw materials.