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China’s rare earth curbs won’t hit chip industry: Taiwan minister
Taiwan’s economy ministry said China’s expanded rare earth export controls are unlikely to affect the island’s semiconductor industry, as the restricted elements are not used in local chip manufacturing.
China last week added five rare earth elements to its export controls, and increased scrutiny on chip users, raising concerns about global supply chains.
The ministry said the rare earths Taiwan’s chip sector relies on are different from those now restricted, and noted the island sources most rare earth materials from Europe, the US, and Japan.
Taiwan is a major player in global semiconductors, with TSMC producing most of the world’s advanced chips.
The ministry warned that China’s new controls could impact other industries, including EVs and drones, and said it will monitor the situation.
China has said the export curbs are aimed at controlling materials with potential military use.
🔗 Source: Reuters
🧠 Food for thought
Implications, context, and why it matters.
Chip impact depends on which rare earths China restricted
- Verify Taiwan’s “no significant impact” claim against the list of five controlled rare earths and the end-use screening language (rules that restrict shipments based on how the buyer will use the materials).
- Despite sourcing from Europe, the US, and Japan, Taiwan has upstream exposure because China controls 85–90% of refined rare earth oxides plus 85–90% of neodymium-iron-boron (NdFeB) magnet output 1.
- Beijing tied the curbs to military uses, pointing to heavy rare earths like dysprosium and terbium for high-temperature magnets. Less than 10% of Dy and Tb separation capacity sits outside China by 2030 1.
EV and drone makers should map non-Chinese magnet recycling
- EV and drone OEMs need non-Chinese neodymium-iron-boron (NdFeB) supply, since vehicles can have up to 70 rare earth motors 2 and demand could top 800,000 tonnes a year by 2040 1. HyProMag USA, a rare-earth magnet recycler, plans a Dallas-Fort Worth site in 2027 targeting about 750 metric tons a year within five years 2. LIFE INSPIREE, an EU-funded recycling initiative, targets up to 700 tonnes a year 3.
- Investors track deals between recyclers like Intelligent Lifecycle Solutions and magnet makers. ILS pulls magnets from end-of-life hard drives in South Carolina and Nevada 2. Recycled feedstock can match virgin quality 4. It cuts embedded carbon by more than 88% versus conventional chemical recycling 2; it lowers energy use by about 35% versus virgin production in China 4. Western refining may reach 20–25% of global demand by 2030 1.
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