Chipmakers still suffering from rare earth shortages, says report — US-China trade truce apparently still hasn’t eased pressures despite agreement taking place in October last year

Despite a truce in the US-China trade war, chipmakers are still facing shortages of rare earth materials crucial for semiconductor production. China's export restrictions on rare earths, including scandium needed for 5G chips, are impacting US firms' supply chains. The limitations extend to various rare earths used in chip manufacturing, prompting concerns in the semiconductor industry. The US government is exploring strategies to address the rare earth supply chain vulnerabilities, including building strategic reserves and diversifying sourcing away from China. Geopolitical tensions are highlighting the importance of rare earths in global tech production and driving efforts to reduce dependency on a single source.