TSMC, the world’s largest contract chipmaker, announced on Wednesday. The company stated that it does not anticipate any direct production impact. This is in response to China’s recent decision to limit exports of two metals. These metals are used in semiconductors and electric vehicles.
According to TSMC, it currently possesses sufficient inventory of gallium and germanium. Additionally, the company is confident in its ability to acquire additional supplies from alternative sources. TSMC is actively collaborating with its suppliers to minimize potential disruptions to the supply chain.
China’s move to restrict the export of gallium and germanium is viewed as a response to the United States’ efforts to restrain China’s technological progress. These metals play a critical role in semiconductor production, which is vital for various products such as smartphones, computers, and automobiles.
While the restrictions may have a ripple effect on the global semiconductor industry, TSMC has expressed that it does not expect any direct impact on its production. The company emphasizes its diversified supply chain and its confidence in meeting customer demand.
TSMC’s statement has provided reassurance to investors who were apprehensive about potential disruptions to the global semiconductor supply chain. Consequently, the company’s shares in Taiwan experienced a more than 2% increase on Wednesday.
The long-term consequences of China’s export restrictions are yet to be determined. However, TSMC’s statement currently suggests that the impact on the company’s production will be limited.
