(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 further disruption to global supply chains.

Below are responses from some companies to the announcement of restrictions effective August 1 on Chinese gallium and germanium exports.

* Volkswagen said on July 6 that it was monitoring the situation in the commodity markets and was “ready to take action together with its partners if necessary.” The German automaker said gallium and germanium played a role in future autonomous driving features.

* Taiwan’s TSMC, the world’s largest contract chipmaker, said it did not expect any direct impact on its output but would continue to monitor the situation.

* Dutch chipmaker NXP Semiconductors, which is listed on Nasdaq, said it did not expect a material impact on its business.

* Microchip Technology said its initial assessment is that there will be no material impact.

* An Intel spokesperson said on July 5 that the company was evaluating the ministry’s statement, adding: “Our strategy of having a diverse global supply chain minimizes our risk of local changes and disruptions.”

* An Infineon source said most of the German chipmaker’s supplies come from outside China.

* Stellantis chief executive Carlos Tavares said restrictions on gallium and germanium exports should not push Western companies to “disengage” from China.

“We are not at war with any Chinese supplier…in this case, it is up to the European Union to work with the Chinese authorities to find a solution,” Tavares said.

* Navitas Semiconductor Corp said it does not expect any adverse effects on its business, adding: “Significant sources of gallium are available around the world, as it is a natural by-product in the production of other metals such as aluminum.”

(Compiled by Catherine Evans; edited by Josephine Mason)

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