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Taiwan doesn't depend on China for rare earths

Taiwan's Economy Ministry said that most rare earth materials are imported from Europe, Japan and the United States, but it is still too early to assess the impact of China's new restrictions on the semiconductor industry.

China tightened its control of the rare earths sector in advance of talks between Donald Trump and Xi Jinping. Beijing added five new elements to the controls and increased scrutiny on chip users.

In a statement on China's new regulations, Taiwan's Economy Ministry said that the majority of rare-earth materials required domestically were supplied by Europe and the United States.

The impact of the semiconductor industry on its operation still needs to be assessed and reassessed. "We will continue to monitor any changes in raw materials costs and indirect effects of supply-chain adjustment," the company said.

Taiwan is the home of the largest contract chipmaker in the world, TSMC. It produces the vast majority advanced chips which are a critical component for artificial intelligence applications.

On Sunday, China had defended its restrictions on the export of rare earth metals and equipment. It said that they were motivated by concerns about their military applications in a period of "frequent war". Ben Blanchard reports.

(source: Reuters)