(Reuters) – China said on July 3 it would restrict exports of two metals used in semiconductors and electric vehicles, escalating a technology war with the United States and potentially causing more disruption to global supply chains.
Following are responses from some companies to the announcement of curbs from Aug. 1 on Chinese gallium and germanium exports.
* Volkswagen said on July 6 it was monitoring the situation on raw materials markets and was “ready to take measures together with its partners if necessary”. The German automaker said gallium and germanium played a role in future autonomous driving functions.
* Taiwan’s TSMC, the world’s largest contract chipmaker, said it did not expect any direct impact on its production but would continue monitoring the situation.
* Dutch-based, Nasdaq-listed chipmaker NXP Semiconductors said it expected no material impact on its business.
* Microchip Technology said its initial assessment is that there will not be a material impact.
* An Intel spokesman said on July 5 the company was assessing the ministry’s statement, adding: “Our strategy of having a diverse, global supply chain minimizes our risk to local changes and interruptions.”
* A source at Infineon said most of the German chipmaker’s supplies come from outside of China.
* Stellantis Chief Executive Carlos Tavares said the restrictions on gallium and germanium exports should not push Western companies to “decouple” from China.
“We are not in a war with any Chinese suppliers … in this case, it is up to the European Union to collaborate with Chinese authorities to find a solution,” Tavares said.
* Navitas Semiconductor Corp said it expects no adverse effects on its business, adding: “Significant sources of gallium are available worldwide, as it is a natural by-product in the production of other metals such as aluminum.”
(Compiled by Catherine Evans; Editing by Josephine Mason)
Source: https://finance.yahoo.com/news/factbox-companies-respond-chinas-curbs-114120876.html