Taiwan has assured that its world-leading semiconductor industry will remain stable despite China’s newly announced restrictions on the export of certain rare earth materials. According to the Ministry of Economic Affairs, the impact of these curbs on Taiwan’s chip manufacturing sector is expected to be minimal.
In a statement to local media, government officials explained that the rare earths targeted by China are not critical to the specific processes used in most semiconductor production in Taiwan. They emphasized that the island’s major chipmakers, including Taiwan Semiconductor Manufacturing Company, have long adopted diversified sourcing strategies to mitigate risks related to supply chain disruptions.
The ministry noted that Taiwan has been proactively monitoring the global supply of key raw materials, including rare earth elements, and has built strategic reserves where necessary. As a result, the country is well positioned to weather any short term changes in export policies by China.
Analysts have also weighed in on the issue, suggesting that China’s move is more symbolic than practical, intended to exert political pressure amid heightened cross strait tensions and increasing global competition in advanced technologies. They argue that Taiwan’s semiconductor industry is largely self reliant in terms of manufacturing capabilities and has cultivated a wide network of international suppliers for critical materials.
In recent years, Taiwan has taken deliberate steps to enhance its economic resilience, including forming alliances with countries like the United States and Japan to secure access to advanced chipmaking equipment and key minerals. These efforts, experts say, have strengthened Taiwan’s role as a cornerstone of the global tech supply chain.
While geopolitical risks remain, the consensus among industry observers is that China’s export restrictions will not pose a serious threat to Taiwan’s semiconductor dominance in the near future.
source: reuters.com
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