The government and domestic semiconductor industries held an emergency meeting in Seoul on Tuesday after China revealed plans to slap export curbs on gallium and germanium which are used in producing semiconductors.
According to an official at a South Korean chipmaker, China’s latest step is expected to have limited impact but that related industries are keeping a close eye on the situation.
This is because the two metals are mainly used in making power and compound semiconductors and are not directly used in producing memory chips which are what South Korean companies mostly produce.
Another industry official said China’s move is unlikely to have significant impact given diversified supply chains.
Earlier on Monday, China’s commerce ministry announced that the two metals will be subject to export controls starting August 1, adding that to export such materials, exporters will have to apply for “special permission from the state” to ship them out of the country.
The step is apparently in response to the U.S.’ move to tighten regulations on exporting semiconductors to China.