US firm AXT says China unit has initial export permits for key chipmaking metals (updated)

AXT

22/09/2023 03:01

(Adds background on export controls, exports in August in
paragraph 3-9)
       BEIJING, Sept 22 (Reuters) - U.S. semiconductor wafer
maker AXT Inc  AXTI.O  said its Chinese subsidiary Beijing
Tongmei had received initial export permits for shipping gallium
arsenide and germanium substrates - compounds key to chipmaking
- to certain customers. 
    Tongmei will continue to work to obtain permits for
additional customers, it said in a statement on Wednesday.
    California-headquartered AXT, which has manufacturing
facilities in China, said in July that it would seek permits to
keep exporting gallium and germanium substrate products from
China after Beijing abruptly announced it would impose export
controls on the niche metals from August.
    The controls mark the latest salvo in an escalating war over
access to high-tech microchips between China and the United
States, and come as Washington considers new restrictions on the
shipment of high-tech microchips to China.
    China's Ministry of Commerce said on Thursday that some
Chinese companies had obtained export licences for gallium and
germanium products, with more still being reviewed.
    This came after China's exports of germanium and gallium
items plunged in August, the first month of the export
controls，customs data showed on Wednesday.
    China exported no wrought germanium products last month,
compared to 8.63 metric tons in July when volumes more than
doubled from June as overseas buyers rushed to lock in supply
ahead of the curbs.
    There were also no exports of wrought gallium products in
August, compared to 5.15 tons in July and 7.67 tons in August in
2022, the data showed.
    China's exports of wrought germanium totaled 36.48 tons in
the first eight months of 2023, up 58% on the year, while
shipments of wrought gallium fell 58% on the year to 22.72 tons
over the January-August period.

 (Reporting by Amy Lv and Dominique Patton in Beijing; Editing
by Tom Hogue and Stephen Coates)
 ((Amy.Lv@thomsonreuters.com;))