China’s rare earth export controls threaten US chip supply
The U.S. faces uncertainty over its chip industry due to China’s new rare earth export controls. These measures could stop companies like TSMC from selling chips to the U.S., as China moves toward requiring export licenses for foreign companies using its rare earth materials. This policy targets semiconductor firms such as TSMC, SK hynix, and Samsung, which rely on rare earths in chip production.
The new rules, effective November 8, could disrupt the global chip supply chain. Rare earths are key in chip-making equipment, and China’s restrictions may hinder companies like ASML and Tokyo Electron. The changes threaten major U.S. firms like NVIDIA, AMD, and Apple, which depend on TSMC for their chips.
