Chip Supply Chain Faces Disruptions from China's Rare Earth Curbs
Businesses across the global semiconductor supply chain are preparing for potential disruptions due to an escalating trade war.
China has imposed curbs on rare earth mineral exports, prompting the US to respond with additional tariffs and restrictions on software sales to China.
China's restrictions represent the first major attempt by Beijing to exercise long-arm jurisdiction over foreign companies to target the semiconductor industry.
This move threatens to stall the production of chips that power the artificial intelligence (AI) boom.
US President Donald Trump announced an additional 100 percent tariff on China and export controls on critical software in response.
The restrictions on rare earth materials are the most targeted move yet by China to limit supplies, affecting the global semiconductor supply chain.
Author's Summary
China's rare earth curbs disrupt global chip supply chain, escalating trade war with the US.