China strategically slows exports of critical materials used in semiconductor fabrication to Taiwan — germanium and quartz exports to the region also threaten o

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China strategically slows exports of critical materials used in semiconductor fabrication to Taiwan — germanium and quartz exports to the region also threaten o

China is considering export controls on AI technologies, including banning local companies from using TSMC, report claims

However, none of the optical connectivity applications depend exclusively on China. Germanium can come from non-Chinese producers, recycling, inventories, and alternative supply chains, and not every optical fiber necessarily has the same germanium requirements. In fact, the refractive-index difference can also be engineered with other dopants, eliminating the need for germanium or its dioxide completely. Furthermore, the report states that China is slowing clearances for Taiwanese companies, which does not automatically mean it is slowing down clearances for companies based in other countries. Of course, increasing the lead times for Taiwan-based companies can impact multiple optical initiatives, though the actual effect remains to be seen.

China produces large volumes of silica sands and quartz sands for glass, construction, fiber optics, semiconductors, and other industrial uses. Quartz (SiO 2 ) is used very widely in the semiconductor industry both as a component of chipmaking tools and as the base for silicon wafers. Meanwhile, the Nikkei report does not give enough technical specifications of SiO 2 to determine which applications the restrictions target.

It should be noted that semiconductor wafers require high-purity quartz with no impurities (≥99.99% SiO2), and China is not the leading producer of HPQ, so it can hardly use its exports as leverage. This potentially brings us back to the optical connectivity market.

High-purity fused silica (SiO₂), produced from quartz or synthetic silica feedstocks, is the primary glass material used to make most optical fibers as it combines very low optical loss at telecom wavelengths with excellent thermal and mechanical stability as well as chemical resistance. Both the fiber core and cladding are typically silica-based, but their refractive indices are deliberately made slightly different to keep light confined inside the core. A common approach is to dope the SiO 2 core with germanium dioxide (GeO 2 ) to raise its refractive index, while the surrounding cladding remains mostly SiO 2 with a lower refractive index.

Meanwhile, optical fiber is commonly produced from synthetic ultra-high-purity silica, not from natural crystalline quartz. Manufacturers typically create the fiber preform by chemical vapor deposition using precursors such as SiCl 4 , which is oxidized to form extremely pure SiO 2 . Then, dopants like GeO 2 can be used to modify the core's refractive index.

That said, China's quartz restrictions can disrupt parts of the optical-component supply chain, but the Nikkei report does not demonstrate that they threaten optical fiber production itself. In fact, germanium/GeO 2 restrictions could be a more direct concern for Ge-doped fiber cores than quartz in general.

While China holds a dominant share of the neodymium production, it does not export control the rare earth material itself, as its real leverage is in processing and refining. NdFeB (neodymium-iron-boron) permanent magnets are used in a wide range of applications, but high-performance grades for aerospace and robotics often contain terbium or dysprosium to increase coercivity and maintain their magnetic properties at high temperatures. China's export controls do not limit neodymium itself or permanent magnets, but NdFeB permanent magnets or magnetic powders containing terbium or dysprosium.

While permanent magnets can be used in HDDs as well as various pumps or motors used in data centers, these applications do not need permanent magnets containing terbium or dysprosium, so it doesn't seem this regulation has anything to do with AI data centers. Yet, it has a lot to do with emerging applications in the aerospace and robotics realms, so slowing down rivals helps China to establish or maintain its lead, as finding cost-effective alternatives to Chinese permanent magnets is not an easy task. Then again, the report only covers companies from Taiwan, and we have no idea how it impacts companies based elsewhere.

Rather than imposing a blanket ban, Beijing appears to be using its dual-use export-control regime to selectively delay shipments based on materials, customers, and end uses to gain leverage over strategically important industries. The biggest potential impact could be on optical connectivity, where China's dominance in germanium supply gives it influence over both silicon-photonics photodetectors and Ge-doped optical fiber.

However, while the effect of the curbs on Taiwanese industries may be significant, what remains unclear is the impact of China's restrictions on the global market.

Anton Shilov is a contributing writer at Tom\u2019s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends. ","collapsible":{"enabled":true,"maxHeight":250,"readMoreText":"Read more","readLessText":"Read less"}}), "https://slice.vanilla.futurecdn.net/13-4-25/js/authorBio.js"); } else { console.error('%c FTE ','background: #9306F9; color: #ffffff','no lazy slice hydration function available'); } Anton Shilov Social Links Navigation Contributing Writer Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.

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