How does mainland Chinese export controls on gallium and germanium impact automotive players?

The gallium and germanium export ban by the mainland Chinese government is going to have a limited impact on the automotive industry. The uncertainties surrounding mainland China's announcement may prompt a temporary rush to find alternative gallium and germanium sources.

The global semiconductor industry has become a critical battleground for economic dominance, particularly between the US and mainland China. Mainland China will impose export controls on two metals used in semiconductor chip production to "safeguard national security and interests", the Ministry of Commerce and General Administration of Customs said in a notice on July 3. "The export control is not an export ban, and permits will be granted if exports comply with the relevant regulations," Shu Jueting, spokesperson for the Ministry of Commerce, said at a press conference on July 6.