// TOM'S HARDWARE US — HARDWARE & GADGET
China strategically slows exports of critical materials used in semiconductor fabrication to Taiwan — germanium and quartz exports to the region also threaten optical and robotics supply chain
When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.
China is slowing or restricting shipments of materials based on germanium and quartz to Taiwan, which creates supply constraints for multiple industries on the island, according to Nikkei. Companies are reporting problems obtaining germanium- and quartz-based materials as well as permanent magnets from Chinese suppliers as customs procedures extend delivery times. In some cases, Taiwanese manufacturers lose orders while waiting for clearance.
China imposed export controls on germanium in 2023 and on quartz (SiO2) in late 2024. At one point, China even restricted exports of gallium and germanium to the U.S., but later lifted the ban and imposed an export control regime. Under the regime, the exporter must disclose the customer and intended use by the end user, which enables Chinese authorities to essentially view, and to some degree, control the whole supply chain. China's Ministry of Commerce can approve, reject, or effectively delay the shipment while reviewing it, which is apparently what it does these days.
The Nikkei story strongly suggests that the delays are selective rather than a blanket slowdown of all germanium, quartz, and magnet exports to Taiwan. Germanium, quartz, and magnets can be used widely across many industries. Yet, the report specifically pins germanium and quartz to optics/photonics and semiconductor manufacturing, and permanent neodymium magnets to the aerospace industry that produces high-performance motors for robotics.
While the report does not determine exactly how granular the targeting is, Nikkei's sources specifically come from optical technology, semiconductor equipment, and aerospace companies. Another thing to note is that all of Nikkei's sources come from Taiwan, indicating that China targets select verticals of the island, not the same verticals globally.
In general, the situation looks less like 'no germanium/quartz/magnets for Taiwan' and more like selective friction applied through China's dual-use export-control regime. The particularly interesting part is that Beijing may not need a Taiwan-specific embargo: by examining the material, buyer, end user, and shipment, authorities can potentially slow strategically sensitive supply chains (think optical connectivity for data centers) while allowing less sensitive trade to continue.
Germanium is widely used in infrared optics (Ge), silicon photonics (Ge), photodetectors (Ge), and optical fiber (GeO2). China controls about 63% of the global germanium — both elemental and dioxide — supply, whereas all other countries — led by Belgium, Canada, and Japan — control 37% of the market, according to InvestInGermanium.com. The U.S. mostly gets germanium and germanium dioxide from Belgium and Canada, according to Introl.com. Meanwhile, Belgium and Japan also import germanium from China, which highlights that the world still largely depends on China when it comes to germanium supply.
While infrared optics is certainly a concern for state security as it is used for night-vision equipment, aerospace sensors, and military systems, it looks like China is more concerned about optical connectivity that is crucial for AI data centers.
In silicon photonics, germanium is mainly used to make photodetectors. Silicon cannot efficiently detect light at the ~1.3 µm and 1.55 µm wavelengths commonly used for optical communications, but germanium can. By integrating germanium with silicon waveguides, manufacturers can build high-speed Ge-on-Si photodiodes that convert optical signals into electrical ones. These detectors are used in optical transceivers and data-center interconnects and could play an important role in co-packaged optics (CPO).
Equally important, germanium dioxide is crucial for optical fiber manufacturing. Adding GeO₂ to silica raises its refractive index and enables manufacturers to form a higher-index fiber core surrounded by lower-index sil