PC Gamer, first and foremost a website dedicated to PC gaming and hardware, has been covering the escalating technology and chip manufacturing dispute between China and the United States and its allies. Whether it is the blocking of critical chip manufacturing equipment or a ban on the sale of certain AI chips, the latest act in this tit-for-tat technology dispute could have a direct impact on the amount we pay for our rigs.

Following a new U.S. proposal to ban the sale of Nvidia's cutting-edge AI chips to Chinese companies, China has announced new regulations on the export of various gallium and germanium materials and products According to Bloomberg, these regulations will go into effect on August 1 and will require companies exporting the metals According to Bloomberg, these regulations will take effect on August 1, and companies that export the metal will have to apply for a license and provide information on where the metal will be sold and for what purposes.

According to a statement issued by the Ministry of Commerce of the People's Republic of China, the reason for the regulations is to "protect national security and interests.

These metals are essential for the manufacture of semiconductors. Germanium was an important component in early transistor designs before it was replaced by silicon, and it is making a comeback by combining with silicon to produce silicon-germanium alloys. In particular, they are used in the manufacture of high-efficiency solar panels, fiber optics, high-brightness automotive headlights, and LCD monitor backlighting.

According to Bloomberg, 94% of the world's gallium production comes from China. Gallium is heavily involved in chip manufacturing, but it is also an important component of cellular phones, wireless communication products, and especially blue LEDs.

China is by far the largest producer of both metals, but this position is due more to low production costs than to the abundance of the metals themselves. Christopher Ecclestone, a principal at Hallgarten & Company, told Bloomberg: "When they stop suppressing prices and mining these metals in the West suddenly becomes more viable, China will be on-goal again."

While China has not blocked exports of the two metals, it remains to be seen how the move will affect the broader high-tech industry. Chip manufacturing is a forward-looking process, and there will be stockpiles and reserves of critical components in case of supply-side shocks. However, these materials are used beyond chip manufacturing, and it is quite possible that there will be spillover effects and price increases on some products in the coming months.

One thing is certain: this technology war could escalate further: advanced technologies, including AI, quantum computing, and sub-1nm nodes, contain secrets that countries are unwilling to share.