TAIPEI, July 6 Reuters Taiwan39;s TSMC, the world39;s largest contract chipmaker, said on Thursday it does not expect any direct impact on its production from China39;s decision to restrict exports of two metals widely used in semiconductors and electric vehicles.

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 China39;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 TSMC39;s production, Taiwan Semiconductor Manufacturing Co said in an emailed statement.

We will continue to monitor the situation closely, it added, without elaborating.

TSMC39;s Taipeilisted shares extended losses on Thursday, closing down 2.9, compared with a 1.7 drop on the broader market, in part due to worries about worsening ChinaU.S. trade tensions and ahead of U.S. Treasury Secretary Janet Yellen39;s visit to Beijing this week.

If the talks between the two sides go well, many restrictions could be loosened, but if the talks go badly, both sides may put up more sanctions after Yellen goes…