Germanium (CN)

Full briefing

Germanium is a lustrous, brittle metalloid recovered primarily as a byproduct of zinc ore processing and, to a lesser extent, coal fly-ash treatment. Global annual production is roughly 130–150 tonnes, making it one of the scarcest industrially-relevant elements. China's dominance in zinc smelting translates to approximately 60% of global refined germanium output, with the remainder produced mainly in Russia, Canada, and Belgium. In semiconductor manufacturing, germanium's most strategic application is in silicon-germanium (SiGe) heterojunction bipolar transistors (HBTs). By incorporating a thin strained SiGe layer during epitaxial growth, foundries can achieve transistor switching speeds that silicon alone cannot match — critical for high-frequency analog circuits in 5G modems and RF front-ends. TSMC and Samsung Foundry both use SiGe process modules at advanced nodes. Applied Materials supplies the specialized CVD epitaxy reactors that deposit these SiGe films. Germanium dioxide (GeO₂) and germanium tetrachloride (GeCl₄) are also key precursors for silica fiber-optic preforms; while less directly relevant to AI chip production, this usage ties germanium to the communications infrastructure that underpins data center connectivity. China imposed export licensing requirements on six germanium-related items — including germanium metal, GeO₂, and germanium epitaxial growth wafers — effective August 1, 2023, simultaneously with the gallium controls. The dual nature of germanium's end uses (semiconductor and photonics) complicates end-user certification. For chipmakers and equipment suppliers relying on germanium precursors, the controls introduced procurement uncertainty and accelerated diversification efforts toward Canadian, Belgian, and Russian producers — though Russian supply carries its own geopolitical risk.