Taiwan says China’s rare-earth curbs unlikely to hit its chip industry

On October 12, Taiwan’s Economy Ministry said that China’s recent expansion of rare-earth export controls is not expected to have a significant impact on the island’s semiconductor industry, as the restricted metals differ from those used in chip production.

The ministry explained that the rare-earth elements affected by the new rules are different from those required for Taiwan’s semiconductor processes, and domestic supplies or derivatives are mainly sourced from Europe, the United States, and Japan, Caliber.Az informs via Reuters.

It warned that China’s expanded controls could affect global supply chains for products such as electric vehicles and drones, emphasising that the situation will need close monitoring.

For the record, on October 9, China expanded its rare-earth export controls, adding five new elements and imposing extra scrutiny on chip users, amid tightening sector controls ahead of talks between Presidents Donald Trump and Xi Jinping.

Taiwan is home to TSMC, the world’s largest contract chipmaker and a key supplier of advanced chips used in artificial intelligence applications.

Earlier, China defended its export restrictions, citing concerns over the military applications of these metals amid what it described as “frequent military conflict.”

By Khagan Isayev