October 12, 2025

Boom! China just shook the rare earth world by expanding its export controls on these precious metals last Thursday. What's cooking? Beijing added five new elements to its watchlist and ramped up checks on chipmakers. Why now? The move comes ahead of major talks between Presidents Donald Trump and Xi Jinping, adding an extra political spice. Taiwan’s Economy Ministry jumped in to clarify: “Most rare-earth-related materials needed domestically are supplied by Europe, the United States and Japan.” Does this mean Taiwan’s chip sector, especially its crown jewel TSMC—the biggest contract chipmaker globally—is safe? Not quite! The ministry warned, "The impact on the operation of the semiconductor industry still requires further stocktaking and assessment. We will continue to monitor changes in raw material costs and any indirect effects that supply-chain adjustments may bring." TSMC is the powerhouse behind the advanced chips fueling artificial intelligence — a true tech titan. Earlier, China defended its heavy-handed controls, saying it’s all about protecting military secrets amid what it calls "frequent military conflict." So, the rare earth saga heats up, with Taiwan keeping a sharp eye on every twist. Will costs soar? Will supply chains twist and tangle? Only time and more monitoring will tell!

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Tags: Rare earth materials, Taiwan semiconductor, China export controls, Tsmc, Chip industry, Supply chain,