TAIPEI, Oct 13 (V7N) – Taiwan’s Ministry of Economic Affairs announced on Sunday that China’s latest restrictions on rare earth exports are unlikely to have a significant effect on the island’s semiconductor industry, as the newly restricted elements differ from those used in chip manufacturing.

China recently expanded its export controls on rare earth materials, adding five new elements and introducing tighter scrutiny for chip-related users. The move comes as Beijing strengthens its grip over critical mineral exports ahead of an expected meeting between Presidents Donald Trump and Xi Jinping.

According to a statement released by Taiwan’s economy ministry, the restricted rare-earth elements listed under China’s expanded export ban are not directly relevant to those used in Taiwan’s semiconductor production processes. As a result, no major disruption to chip manufacturing is anticipated for now.

The ministry further noted that Taiwan primarily sources the rare-earth materials needed for domestic production from Europe, the United States, and Japan.

Taiwan is home to Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, responsible for producing a majority of the world’s advanced semiconductors essential for artificial intelligence and high-performance computing applications.

However, the ministry cautioned that China’s broader restrictions could still affect global supply chains for industries such as electric vehicles, drones, and renewable technologies, adding that the situation will be closely monitored.

Earlier on Sunday, Chinese authorities defended the decision to tighten export controls, citing national security concerns and the potential military applications of rare earth elements amid what they described as “frequent global military conflicts.”

The developments highlight escalating geopolitical and trade tensions between Beijing and Washington, with the rare earth sector increasingly viewed as a strategic battleground in the global technology race.

END/WD/SMA/