Don't need China for most rare earth needs, says Taiwan
What's the story
Taiwan's economy ministry is evaluating the impact of China's recent expansion of rare earth export curbs on its semiconductor industry. According to the ministry, most of Taiwan's rare earth materials are sourced from Europe, the United States, and Japan. However, it is still assessing how these new restrictions could affect supply chains and costs in this sector.
Export restrictions
China tightens control over rare earth exports
China recently tightened its control over rare earth exports, adding five new elements and imposing additional scrutiny on chip users. This move comes ahead of talks between US President Donald Trump and Chinese President Xi Jinping. The Taiwanese economy ministry stressed that "the impact on the operation of the semiconductor industry still requires further stocktaking and assessment."
Industry impact
TSMC's role in Taiwan's semiconductor industry
Taiwan is home to the world's largest contract chipmaker, TSMC. The company produces most of the advanced chips used in artificial intelligence applications. As such, any disruption in supply chains or fluctuations in costs due to China's new restrictions could have far-reaching implications for Taiwan's semiconductor industry.
Defense statement
China defends export curbs
Earlier today, China defended its export curbs on rare earth elements and equipment. The country said the restrictions are due to concerns over military applications of these metals amid "frequent military conflict."