Dollar Steadies As Fed Minutes Will Determine Course
The dollar index, which measures the currency against a basket of six major peers, including the euro and yen, was little changed at 103.02, after tracking between 103.75 and 102.75 since early June.
Singapore Struggles With Wild Price Swings To Power Market
Singapore is struggling to attract new investors to its volatile power market, threatening to unwind reforms aimed at boosting competition and reducing electricity bills for its consumers.
Twitter-Reading Limitation Claims Causes Further Backlash
Twitter CEO Linda Yaccarino on Tuesday tweeted in defense of the temporary cap on the number of tweets users can read in a day. The company said advertising has been stable in the days since the step that drew heavy criticism from users and marketing professionals.
Today’s News
Since the beginning of the chip war between the United States (U.S.) and China began, the latter has not retaliated in any way. Many viewed China’s nonchalant approach to the matter was to avoid hurting Chinese ambitions in telecoms, artificial intelligence and other related industries.
However, the situation is rapidly changing as China has just moved to impose a ban on American chipmaker Micron Technology’s products in the previous month. This has signaled a direct retaliation from the once “nonchalant” nation.
In response to the drastic imposition, China has added that Micron poses some “serious network risks,” which has led to the product to be banned from crucial infrastructure projects in the world’s largest economy.
The imposed ban has caused Micron to lose approximately 28% shares from China’s DRAM memory chips that were utilized in all electronics. Micron comes second to Samsung’s 43% share. In 2022, Micron has reported a total revenue of USD 30.7 billion with a majority of which were funded from the mainland itself.
Currently, the situation are as follows:
Semiconductor Industry In Jeopardy As China Limits The Export Of Metal
China will control exports of selected metal-based materials that are widely used in the semiconductor industry, exclaimed its commerce ministry. The latest salvo in an escalating chip war over access to high-tech microchips between Beijing and the United States.
The controls, which China said were aimed at protecting national security and interests, will require exporters to seek permission to ship, particularly for gallium and germanium.
Firms Rush To Stockpile With Application Permits
Companies caught out by China’s decision to restrict exports of two metals widely used in semiconductors and electric vehicles were racing to secure supplies as some industry suppliers worry that the new imposition would also result in curbs on rare earth exports.
The abrupt announcement of controls will be effective on 1 Aug onwards. Exports of gallium and germanium products have ramped up a trade war with the U.S. and could potentially lead to more disruptions to various global supply chains.
Gallium And Germanium
Gallium and germanium products are metals used in the production of computer chips, electric vehicles (E.V.) and other products, to protect national security interests.
What Is Gallium?
Gallium is a type of metal that comprises of trace amounts in zinc ores and in bauxite. Gallium metal is produced when processing bauxite to make aluminum. Around 80% is produced in China, according to the CRMA.
Gallium is used to make gallium arsenide for use in electronics. Only a few companies – one in Europe and the rest in Japan and China – can make it at the required purity, claims the CRMA.
China has reportedly exported 94 metric tons of gallium in 2022, up 25% on the prior year, according to Chinese customs.
What Is Germanium?
Germanium ores are rare as they are a by-product of zinc production and from coal fly ash.
China produces around 60% of the world’s germanium, according to European industry association Critical Raw Materials Alliance (CRMA), with the rest coming from Canada, Finland, Russia and the United States.
China exported approximately 43.7 metric tons of unwrought and wrought germanium last year, according to Chinese customs.
