China Blocks ‘Helium’ This Time… Bans Export of Key Semiconductor Material

China has quietly imposed new export controls on tungsten, a critical metal used in semiconductors and military hardware, marking its latest move in the ongoing tech war. This decision directly impacts South Korean chipmakers, which rely heavily on Chinese tungsten for advanced AI chip production.

The ban targets a material essential for making heat-resistant components in high-performance chips, a sector where Korea’s Samsung and SK Hynix lead globally. By restricting supply, Beijing aims to pressure Seoul into aligning more closely with Chinese tech standards rather than American-led restrictions.

This strategy mirrors China’s earlier “helium” controls, which disrupted global semiconductor supply chains and forced companies to seek alternatives. The tungsten ban is even more potent because China controls over 80% of global tungsten production and processing.

South Korean firms now face a painful choice: either pay premium prices for non-Chinese tungsten or risk production delays in their AI chip lines. The move also threatens the stability of Korea’s $200 billion semiconductor export industry, which powers the nation’s economy.

Chinese AI models like DeepSeek and Kimi, meanwhile, continue to advance using domestic hardware, reducing their reliance on foreign materials. This creates a stark contrast with Korean companies that remain tethered to Chinese raw materials for their cutting-edge AI chips.

The global tech community watches closely as this resource war reshapes alliances and supply chains. For Korea, the tungsten ban is a clear signal that China will weaponize its material dominance to protect its own AI ambitions.