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

Navitas Semiconductor

07/07/2023 08:05

(Adds comments from Japanese companies, association in
paragraphs 3-7)
       July 7 (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. 
    
    * A spokesperson for the Semiconductor Equipment Association
of Japan said it was difficult to know whether the export
restrictions would lead to shortages. 
    
    * Dowa Holdings  5714.T , the world’s top producer of
high-purity gallium used in products such as wafers and LEDs,
said it was investigating the situation.
    
    * A spokesperson for Fujitsu  6702.T  said the company "is
currently not active in the semiconductor business, so we are
not directly impacted by the export regulations. Nevertheless,
we will continue to carefully monitor market trends and other
significant movements that may influence our procurement of
semiconductors."
    
    * Nichia Corp, a leading maker of gallium nitride (GaN)
based semiconductor lasers used in products such as projectors,
said "there is no impact at the current time. We are looking
into this so don’t know about the future." 
    
    * A spokesperson for Sumitomo Chemical  4005.T , which uses
gallium as a raw material in its compound semiconductor
business, said the company is monitoring the situation closely
and collecting information. 
    
    * Volkswagen  VOWG_p.DE  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  2330.TW , 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
 NXPI.O  said it expected no material impact on its business. 
    
    * Microchip Technology  MCHP.O  said its initial assessment
is that there will not be a material impact.
     
    * An Intel  INTC.O  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  IFXGn.DE  said most of the German
chipmaker's supplies come from outside of China. 
    
    * Stellantis  STLAM.MI  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  NVTS.O  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; Additional reporting by Sam
Nussey in Tokyo; Editing by Josephine Mason and Sonali Paul)