Taiwanese chip maker TSMC expects China’s new export restrictions will have no direct impact on the company’s output. Beijing recently announced it will limit exports of two key raw materials for the chip industry.
Since August 1, Chinese exporters of these metals, called gallium and germanium, must first seek permission from the Chinese government to export them from the country. They must also report details on foreign buyers. Beijing’s move appears to be a counter-reaction to recently announced export restrictions for Dutch chip machine maker ASML to China.
Led by the United States, Western countries are trying to prevent China from developing advanced chips itself, because they can also be used for military purposes. The situation around Taiwan plays a big part in the frosty relationship between the two superpowers.
Renegade region
Taiwan is considered a renegade region by China and the Chinese have held two major military exercises around the island in the past year. Taiwan, which has other major chip companies besides TSMC, is also the world’s top chip maker. For example, TSMC makes chips for customers such as iPhone maker Apple and chip group Intel. The company is also a major customer of ASML.
“After evaluation, we do not expect export restrictions on gallium and germanium feedstocks to have any direct impact on production,” the company said in a statement. TSMC did not elaborate on long-term indirect effects, but said it continues to monitor the situation closely.
Minimize
Taiwan’s Economy Minister Wang Mei-hua also downplayed the impact of the new export restrictions. According to the minister, this is because the germanium and gallium mined in China are mainly raw materials which are then refined in countries such as the United States and Japan. “Taiwan imports refined materials, so the short-term impact is limited,” said the minister, who said he would continue to monitor the impact of export restrictions on commodity prices and supplies in the long term. term.
Source: BNR
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