US firm AXT says China unit has initial export permits for key chipmaking metals

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US firm AXT says China unit has initial export permits for key chipmaking metals
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U.S. semiconductor wafer maker AXT Inc said its Chinese subsidiary Beijing Tongmei had received initial export permits for shipping gallium arsenide and germanium substrates - compounds key to chipmaking - to certain customers. California-headquartered AXT, which has manufacturing facilities in China, said in July that it would seek permits to keep exporting gallium and germanium substrate products from China after Beijing abruptly announced it would impose export controls on the niche metals from August. The controls mark the latest salvo in an escalating war over access to high-tech microchips between China and the United States, and come as Washington considers new restrictions on the shipment of high-tech microchips to China.

Illustration picture of Gallium and Germanium

Tongmei will continue to work to obtain permits for additional customers, it said in a statement on Wednesday. The controls mark the latest salvo in an escalating war over access to high-tech microchips between China and the United States, and come as Washington considers new restrictions on the shipment of high-tech microchips to China.

This came after China's exports of germanium and gallium items plunged in August, the first month of the export controls,customs data showed on Wednesday.

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