Taiwan Says It “Doesn’t Need China” for Most Rare Earths Needed by Its Chip Industry

Taipei, Oct. 12, 2025 — Taiwan’s Ministry of Economic Affairs has delivered a firm message: China’s recent expansion of export controls on rare earth elements is unlikely to significantly impact Taiwan’s semiconductor sector. While Beijing’s move has stirred global nerves, Taiwan says most of the rare earth inputs it relies on come from Europe, Japan, and the United States, not China.

Taiwanese officials pointed out that the specific rare earth elements now under China’s stricter export rules differ from those used in advanced chip manufacturing. As a result, chip fabs on the island are expected to weather the changes with minimal disruption. Nevertheless, the ministry acknowledged the possibility of ripple effects across other high-tech supply chains—especially in electric vehicles, drones, and magnet-intensive components—and pledged to continue monitoring cost and supply risks.

China’s expanded export curbs include five additional elements—holmium, erbium, thulium, europium, and ytterbium—alongside tighter licensing regimes for semiconductor-related applications. These measures have raised alarms globally, especially in nations heavily dependent on Chinese processing capacity.

By emphasizing its diversified supply sourcing and technology independence, Taiwan is signaling a push for supply-chain resilience. At the same time, experts caution that downstream industries and specialty materials might still feel pressure, particularly if China extends controls further or enforces licensing with rigidity.