TSMC says China's rare-earth export restrictions will have limited short-term impact on company — concern lies in transitioning away from China supply

TSMC is not immediately concerned about China's rare-earth export restrictions due to having enough supply from other sources. However, the challenge lies in transitioning away from Chinese suppliers in the long term. China's dominance in rare-earth processing capacity has caused disruptions in the semiconductor industry, prompting other countries like Australia, Canada, and the U.S. to explore expanding their rare-earth mining capabilities. TSMC has one to two years of rare-earth supplies but anticipates a gradual shift away from Chinese sources, raising questions about future industry supply if China restricts access to its reserves.