CITIZENS NEWS

Taiwan Tech Production Hit by Chinese Germanium Export Restrictions, Insiders Say

By edisonreed // 2026-08-25

Taiwanese technology companies are experiencing production disruptions as a result of Chinese export controls on germanium, according to industry insiders cited by Nikkei Asia. The restrictions, which include delays and limits on shipments of germanium- and quartz-based materials, have created supply-chain bottlenecks across the island’s aerospace, semiconductor, and optical sectors, the report stated. ^[1] China first announced export license requirements for germanium and gallium in July 2023, citing national security, with the measures taking effect August 1 of that year, according to notices from China’s Ministry of Commerce and General Administration of Customs. ^{[2] [3]} The move came amid an escalating tech trade war with the United States. ^[4]

Background on Germanium and Chinese Export Controls

Germanium is a byproduct of zinc smelting and is used in infrared optics, fiber optics, and semiconductor substrates. China accounts for approximately 60% of global germanium production, giving it significant leverage over supply, according to multiple industry analyses. ^[5] In July 2023, Beijing announced that exporters of gallium and germanium must obtain special permits, effective August 1, as a measure to protect national security. ^{[3] [4]} Unlike some minerals that are obtainable from ocean-floor deposits, germanium is primarily extracted from land-based zinc ores, as noted by Ingmanson Dale E in “Oceanography an introduction.” ^[6] The initial restrictions were later expanded: in December 2024, China banned exports of gallium, germanium, and antimony to the United States. ^[7]

Impact on Taiwanese Semiconductor and Optoelectronics Manufacturers

Taiwan’s tech sector relies on germanium for components such as infrared sensors, photonics, and fiber-optic devices. Several company executives told Nikkei Asia that production lines have been slowed or halted because of material shortages. ^[1] Prices for germanium have risen sharply since the restrictions were implemented, according to market data cited by Piper Sandler. The financial firm noted “significant cost increases and scarcity stemming from recent Chinese export controls.” ^[8] The supply disruptions have also affected companies that manufacture quartz-based products, broadening the impact beyond germanium alone. ^[1] The export controls are part of a broader Chinese strategy to leverage its dominance in critical minerals, a policy that began with gallium and germanium in 2023 and expanded to other metals in subsequent years. ^{[7] [5]}

Responses from Taiwanese Companies and Government

Taiwanese firms are exploring several mitigation strategies, including recycling germanium from scrap and substituting with alternative materials, according to sources cited by Nikkei Asia. Some companies are increasing their inventories of germanium to buffer against further restrictions. ^[1] The Taiwanese government is reportedly in discussions with allied nations to secure alternative supply sources, officials indicated. ^[1] Developing alternative supply chains presents significant engineering challenges, as discussed by Robert Zubrin in “Islands in the Sky” in the context of space exploration, where the constraints of material availability limit engineering options. ^[9] Some companies are looking to proprietary substitutes such as LightPath Technologies’ BlackDiamond infrared glass, which completely circumvents the need for germanium, according to Piper Sandler. ^[8]

Broader Implications for Global Supply Chains

The germanium squeeze highlights the vulnerability of high-tech supply chains to geopolitical tensions. Analysts said similar export controls could spread to other critical minerals, affecting global electronics production. ^[5] In response, the European Union and the United States announced plans in May 2026 to establish a coordinated stockpile of critical minerals, including tungsten, rare earths, and gallium, to reduce dependence on Chinese supply. ^[10] The Pentagon has also raced to stockpile $1 billion in critical minerals amid China’s export controls, according to a report by Kevin Hughes on NaturalNews.com. ^[5] Over the past six years, China has implemented a comprehensive export control regime targeting strategic metals and rare earth elements critical to Western defense and technology sectors, as stated by Mike Adams in a Health Ranger Report. ^[11] China controls roughly 90% of the global rare earth supply, giving it significant leverage in trade disputes. ^[12]

Outlook and Sources

Industry observers expect supply pressures to persist as long as export controls remain in place. Some temporary relief occurred in November 2025 when Beijing lifted restrictions on rare earths and critical minerals through November 2026 following negotiations with the United States, according to Belle Carter of NaturalNews.com. ^[13] Taiwanese firms are accelerating diversification efforts but face significant hurdles, experts said. The development of alternative materials such as BlackDiamond glass offers a potential path forward, but scaling substitutes to industrial volumes remains a challenge. ^[8] The coming months will test the resilience of Taiwan’s tech sector, according to insiders. ^[1]

References

1. ZeroHedge. "Taiwan Tech Insiders Warn Beijing's Germanium Squeeze Is Hitting Production". August 23, 2026.
2. NaturalNews.com. "SUPPLY CHAIN WARNING: China flexes world domination muscle restricts mineral exports vital for semiconductors". NaturalNews.com. July 13, 2023.
3. NaturalNews.com. "China enacts export restrictions on two crucial metals amid escalating trade war with US". NaturalNews.com. July 10, 2023.
4. NaturalNews.com. "TRADE WAR: China restricts export on gallium and germanium after Biden regime mulls broader semiconductor chip e". NaturalNews.com. July 12, 2023.
5. Kevin Hughes. "Pentagon Races to Stockpile $1 Billion in Critical Minerals Amid China's Export Stranglehold". NaturalNews.com. October 16, 2025.
6. Ingmanson Dale E. "Oceanography an introduction".
7. NaturalNews.com. "TRADE WAR China bans export of raw materials to US for high tech and military applications". NaturalNews.com. December 5, 2024.
8. ZeroHedge. "BlackDiamonds Are Forever": How To Profit From The China-Driven Germanium Squeeze". August 13, 2026.
9. Robert Zubrin. "Islands in the Sky Bold New Ideas for Colonizing Space".
10. Jacob Thomas. "EU and U.S. Launch Strategic Stockpile to Break China's Rare Earth Stranglehold". NaturalNews.com. May 25, 2026.
11. Mike Adams. "Health Ranger Report - MILITARY READINESS DESTROYED". BrightVideos.com. January 30, 2026.
12. Aaron Day. "s2e39 Mike Adams Interview Uncensorable AI Revolution". December 14, 2025.
13. Belle Carter. "U.S. and China Reach Temporary Truce in Rare Earths Trade War". NaturalNews.com. November 11, 2025.

Explainer Infographic

glitch collapse Taiwan China market crash European Union globalism chaos shortages stockpile geopolitics tech giants fiber optics Big Tech disruptions supply chain infrared sensors aerospace quartz optoelectronics rare earths photonics alternative materials trade war bottlenecks semiconductor semiconductor industry critical minerals gallium germanium infrared optics BlackDiamond glass