Yunnan Germanium Signs $194.4 Million Sino-American Semiconductor Deal as China Retains Export Control

Highlights

• Yunnan Xinyao will supply 180,000 four-inch N-type InP semiconductor substrates to AOI under a 2027 agreement worth $194.4 million.
• A five-year framework targets 900,000 units through 2031, but all deliveries require Chinese dual-use export licenses.
• The deal exposes U.S. dependence on specialized semiconductor substrate manufacturing, not just raw mineral supply.
• Yunnan Germanium shares rose 10% on the news but remain roughly 43% below their June intraday peak.
• AOI retains the right to cancel affected orders if Chinese export approvals are denied.