A trade war between China and the United States over the future of semiconductors is escalating.
Beijing hit back Monday by playing a trump card: It imposed export controls on two strategic raw materials, gallium and germanium, that are critical to the global chipmaking industry. “We see this as China’s second, and much bigger, counter measure to the tech war, and likely a response to the potential US tightening of [its] AI chip ban,” said Jefferies analysts. Sanctioning one of America’s biggest memory chipmakers, Micron Technology\n \n , in May was the first, they said.
Shares of Chinese producers of the two raw materials surged by 10% on Tuesday. Beyond China, Australian rare earths producers also advanced, as investors expected Beijing might extend export curbs to that group of strategically important minerals. Lynas Rare Earths\n \n rose 1.5%. How do they play into the chip war? The United States is dependent on China for these the two critical elements.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
United States ISM Manufacturing PMIGet the ISM Manufacturing PMI results in real time as they're announced and see the immediate global market impact.
Read more »
‘Barbie’ Banned In Vietnam Over Map Showing China’s Claims In South China SeaVietnam has banned commercial screenings of Warner Bros’ Barbie due to a scene that depicts a map of the South China Sea with the “nine-dash line” that is contested by the Vietnamese government. T…
Read more »
China restricts key chip metal exports in semiconductor trade warChina is imposing restrictions on critical metals used in the construction of chips and semiconductors, the latest blow in the country's trade war with the United States and Europe.
Read more »
China hits back in the chip war, imposing export curbs on crucial raw materials | CNN BusinessBeijing will impose export controls on two rare elements essential for manufacturing semiconductors, in apparent retaliation after the United States and Europe restricted chip exports to China.
Read more »