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Factbox: Companies respond to China’s curbs on gallium and germanium exports

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(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 (ETR:VOWG_p) 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 (NASDAQ:NXPI) said it expected no material impact on its business.

* Microchip Technology (NASDAQ:MCHP) said its initial assessment is that there will not be a material impact.

* An Intel (NASDAQ:INTC) 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 (OTC:IFNNY) 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.”

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