(AP Photo/Chiang Ying-ying)

Taiwan’s economy ministry has announced that China’s newly imposed restrictions on rare earth exports are unlikely to disrupt the island’s semiconductor industry, as the controlled elements differ from those used in chip manufacturing. Earlier this week, China expanded its export controls, adding five new rare earth elements and increasing scrutiny on chip-related applications. This move, seen as a strategic tightening of control ahead of talks between Presidents Donald Trump and Xi Jinping, raised concerns about global supply chain disruptions. However, Taiwan’s economy ministry clarified that the rare earths targeted by China’s ban are not critical to the island’s semiconductor processes.“Taiwan’s chip industry sources its rare earth needs primarily from Europe, the United States, and Japan,” the ministry stated, emphasizing that no significant impact is expected on local chip production. Taiwan, home to TSMC, the world’s largest contract chipmaker, plays a pivotal role in producing advanced chips vital for artificial intelligence and other technologies. While the ministry downplayed immediate concerns for the semiconductor sector, it cautioned that China’s curbs could affect global supply chains for electric vehicles, drones, and other products, urging close monitoring.China defended its export restrictions on Sunday, citing concerns over the military applications of rare earths amid rising global tensions. The move underscores Beijing’s growing assertiveness in controlling critical resources as geopolitical dynamics shift.