China slows critical material exports to Taiwan, impacting semiconductor and robotics sectors

Chinese customs delays are affecting shipments of germanium, quartz-based materials, and permanent magnets to Taiwan. This is creating supply constraints for semiconductor, optical, and robotics industries. The delays appear selective, targeting specific verticals.

The export-control regime requires Chinese suppliers to disclose end customers and intended uses, giving Beijing's Ministry of Commerce visibility into the entire supply chain. This mechanism allows authorities to approve, reject, or simply hold shipments during review, creating prolonged uncertainty for Taiwanese buyers across multiple industries.

Germanium's strategic importance stems from its use in infrared optics, silicon photonics, photodetectors, and optical fiber production. With China controlling roughly 63 percent of global germanium supply, Taiwanese firms in optical technology, semiconductor equipment, and aerospace sectors face limited alternative sourcing, as even Belgium and Japan import germanium from China, underscoring the island's dependence on Chinese materials.