S.Korea, Taiwan see limited impact of China curbs on chipmaking materials (updated)

Gold Strategy

04/07/2023 06:59

(Recasts, adds Taiwan government response in paragraph 9,
previous SEOUL)
    By Joyce Lee and Ben Blanchard
       SEOUL/TAIPEI, July 4 (Reuters) - South Korean and
Taiwanese ministers said on Tuesday the short-term impact of
China's export controls targeting gallium and germanium used in
the chip industry would be limited, with a Seoul official
pointing to stockpiles and alternative supplies.
    South Korea is a leading chip maker and the industry
ministry would continue to monitor the situation, since it could
not rule out the possibility that China might extend the scope
of its export controls to other materials, said Young J. Joo,
deputy minister for industrial policy.
    "We are monitoring the situation in key countries such as
the U.S. and Japan and will make utmost efforts to prepare
measures to deal with even unlikely situations," the deputy
minister said.
    China did not control an absolute amount of germanium in the
world as it did with rare earths, the official said.
    The ministry will continue to support the development of
alternative materials and import channels, he added.
    The Korea Mine Rehabilitation and Mineral Resources
Corporation (KOMIR) had about 40 days stockpile of gallium that
local industry could use, a government source with knowledge of
the matter said, adding there were other sources of germanium.
    Taiwan, home to the world's largest contract chipmaker
Taiwan Semiconductor Manufacturing Co Ltd (TSMC)  2330.TW ,
expects the short-term impact of the controls to not be big,
Economy Minister Wang Mei-hua told reporters in Taipei.
        China both produces and exports large amounts of the
rare elements gallium and germanium but in unrefined form, which
is refined overseas in countries such as the U.S. and Japan, and
then imported by Taiwan imports, Wang added.
  
        "But what impact on the international markets long-term
controls will have, we will pay attention to, and pay close
attention to follow up price fluctuations or supply issues," she
said. 
  

 (Reporting by Joyce Lee and Ben Blanchard; Additional reporting
by Hyunsu Yim in Seoul
Editing by Ed Davies and Louise Heavens)
 ((Hyunsu.Yim@thomsonreuters.com;))