Consequently, all major players in the industry, including Broadcom, GlobalFoundries, Qualcomm, TSMC, Samsung, Seagate, and Western Digital, are likely to be affected.
The move is seen as a response to the imposition of 54% tariffs on Chinese-made products by the US and follows the introduction of export restrictions that were imposed on seven rare earth elements in the immediate aftermath of tariffs being announced.
China produces about 90% of the world’s rare earth elements - 17 critical materials used in defence, electric vehicles, energy, and electronics - and the US relies heavily on imports from China which has developed an efficient, vertically integrated supply chain for mining, processing, and refining.
The move by the Chinese will simply add further disruption and uncertainty to a situation in which the tariffs announced by the US are expected to push the semiconductor sector, especially here in Europe, into a sharper downcycle, with weaker demand expected across most segments.
