China export curbs strain chips

China’s plan to stop sulfuric acid exports from May is rippling from metals into semiconductors, raising new supply risks for South Korea’s chip industry. (bloomberg.com) Bloomberg reported on April 10 that Chinese producers had received notice of the change and that at least one large buyer had been told directly by a supplier. Seoul Economic Daily reported on April 13 that the move helped push aluminum prices higher as traders priced in tighter chemical supply. (bloomberg.com) (en.sedaily.com) Sulfuric acid is a basic industrial chemical used to process ores, fertilizers and high-purity electronics materials. In chip plants, ultra-pure sulfuric acid is used to scrub contamination off silicon wafers during repeated cleaning steps between fabrication stages. (semiconductor.samsung.com) (en.sedaily.com) Samsung Semiconductor says wafer cleaning is repeated throughout manufacturing because even tiny particles or trace impurities can damage yield and reliability. Seoul Economic Daily reported on March 18 that semiconductor-grade sulfuric acid used for that cleaning must reach purity above 99.9999%. (semiconductor.samsung.com) (en.sedaily.com) South Korea has built some domestic buffer. Korea Zinc said on March 18 that it has annual semiconductor sulfuric acid capacity of 280,000 tons across 19 lines at Onsan, plans to lift that to 320,000 tons in the second half of 2026, and already covers more than 60% of domestic demand. (en.sedaily.com) The pressure point is the broader chemical chain, not only one acid. Seoul Economic Daily tied the sulfuric-acid curbs to worries about bromine and helium, two inputs used in chipmaking and adjacent electronics processes, as manufacturers in South Korea face overlapping supply shocks. (en.sedaily.com) Helium was already under strain before this week. Seoul Economic Daily reported on March 5 that Qatar Energy had declared force majeure after an attack on Ras Laffan, and that Qatar accounts for about 30% of global helium production used to cool silicon wafers in semiconductor manufacturing. (en.sedaily.com) Sulfuric acid supply was also tightening before China’s move. Bloomberg reported on March 21 that nearly half of the world’s sulfur supply, which is turned into sulfuric acid for phosphate processing, comes from Middle Eastern countries exposed to disruption around the Strait of Hormuz. (bloomberg.com) Bromine is a smaller market, but it is concentrated too. The United States Geological Survey said in its 2025 Mineral Commodity Summaries that U.S. bromine imports from 2020 through 2023 came mostly from Israel at 83%, followed by Jordan at 9% and China at 3%, a reminder that a few producers dominate supply. (usgs.gov) China has used export controls on other industrial materials before. Reuters reported in June 2025 that Beijing’s suspension of rare earth and magnet exports had already disrupted supply chains for automakers, aerospace groups and semiconductor companies. (usnews.com) What happens next depends on whether the May halt is brief or becomes another long-running trade restriction. For chipmakers in South Korea, the immediate task is the same as it was at the opening of this story: secure enough chemicals and gases to keep wafer lines running without interruption. (bloomberg.com) (en.sedaily.com)