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China Rare Earth Export Controls Threaten TSMC Chip Sales to US AI Industry

Beijing’s sweeping rare earth export restrictions taking effect November 8 may force TSMC to obtain licenses for chip exports. The measures threaten to cut off advanced semiconductors from American AI companies reliant on Taiwanese manufacturing.

China’s unprecedented rare earth export controls could potentially bar TSMC from selling critical semiconductors to American companies, creating massive uncertainty for the U.S. chip industry and threatening to disrupt the artificial intelligence supply chain. The new measures, set to take effect November 8, represent a significant escalation in the ongoing trade tensions between Washington and Beijing, with rare earth materials becoming the latest battlefield in the technological cold war.

Understanding China’s Rare Earth Dominance