China plays a trump card in the chip war, but Apple chip production unaffected so far

Taiwan Semiconductor Manufacturing Company (TSMC), Apple’s contract chipmaker, said it doesn’t expect any immediate impact on its production from China’s decision to restrict the export of two metals widely used in semiconductors and electric vehicles.

Ben Blanchard and Roger Tung for Reuters:

In a move that a top Chinese trade adviser warned was “just a start,” Beijing said on Monday it would limit exports of products made from the minor metals of gallium and germanium to protect national security. That followed the U.S. decision to impose export restrictions to curb China’s access to key technologies used for artificial intelligence.

Taiwan is a major producer of chips used in everything from smartphones and cars to fighter jets, supplying companies like Apple and Nvidia.

“After evaluation, we do not expect the export restrictions on raw materials gallium and germanium will have any direct impact on TSMC’s production,” Taiwan Semiconductor Manufacturing Co said in an emailed statement. “We will continue to monitor the situation closely,” it added, without elaborating.

MacDailyNews Take: We’ll see if China does anything more with its rare earths export quota, but when they cut rare earths exports in 2010 amid tensions with the United States, it resulted in greater efforts by companies outside of China to produce the metals and China’s global market share dropped precipitously from 97% in 2010 to about 60% in 2019.

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