US-China trade war chip supply chain
The entire world’s tech industry may be shaken due to the ongoing trade war between US-China. According to China’s new rules, foreign companies will have to obtain permission to export any material in which China’s rare earth minerals have been used. Due to this new rule, the supply chain of rare earth minerals used in computer chips and military applications and AI can be badly affected.
China imposed ban
With China banning the export of rare earth minerals and the US imposing additional tariffs and restrictions on Chinese software, companies around the world are bracing themselves for disruptions in the semiconductor supply chain. This ban imposed by China will limit the supply of rare earth minerals. This is a targeted step taken by China. China’s main goal is to target America through this.
Bad effect on tech industry
The ongoing trade war between China and America will not only impact the supply chain, but it is also going to impact the growth seen in the semiconductor industry and AI sector. Recently, US President Donald Trump has announced that he will impose 100 percent additional tariff on China. This ban has been imposed to ban the export of all types of critical software.
Now, due to the ban imposed by China on rare earth minerals, the shipment of ASML Holding NV, the world’s most advanced semiconductor manufacturing company, may be delayed by several weeks. At the same time, shipments of many other chip manufacturing companies will also be delayed. This is a big blow to the entire tech industry. Due to this ban by China, the chip supply chain may come to a complete halt.
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