Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it did not expect any direct effect on its production caused by China’s latest export controls on two rare metals essential for making semiconductors.
The Chinese Ministry of Commerce and General Administration of Customs announced on Monday that exports of gallium and germanium are to require a license starting from Aug. 1 over security concerns, as Beijing and Washington tussle over the global market for chips.
TSMC, whose clients include Apple Inc and Intel Corp, controls more than half the world’s output of the silicon wafers that are used to power everything from drip coffee machines to vehicles and missiles.
Photo: Reuters
“After evaluation, we do not expect the export restrictions on raw materials gallium and germanium will have any direct impact on TSMC’s production,” the company said in a statement.
TSMC did not elaborate on the long-term indirect impacts, but said it would monitor the situation closely.
Minister of Economic Affairs Wang Mei-hua (王美花) downplayed the impact of the export controls, saying Chinese-mined germanium and gallium are mainly raw materials that are refined in countries such as the US and Japan.
“Taiwan imports the refined materials so the short-term impact is limited,” she told reporters on Tuesday.
“We will closely monitor the impact of long-term [export] restrictions on the international market in terms of pricing and supply,” Wang said.
Gallium, found in integrated circuits, LEDs and photovoltaic panels, among other things, is considered a critical raw material by the EU.
China accounted for 80 percent of global gallium production, a 2020 report by the European Commission said.
Germanium is essential for making optical fibers and infrared camera lenses, with 80 percent of it also coming from China, the same report said.
The export curbs follow Washington’s blacklisting of Chinese companies in recent years in a move aimed at cutting them off from access to US technologies, including the most advanced chips.
China is sparring with the US over a range of issues including technology, trade and Taiwan.
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