Taiwan says still assessing impact of China rare earths curbs on chip industry

(Changes wording in headline) TAIPEI (Reuters) -Most rare earth materials used in Taiwan are supplied by Europe, the United States and Japan, but the impact of China's new curbs on the semiconductor industry still needs to be assessed, the island's economy ministry said on Sunday. China dramatically expanded its rare earths export controls on Thursday, adding five new elements and extra scrutiny for chip users as Beijing tightens control over the sector ahead of talks between Presidents Donald Trump and Xi Jinping. Taiwan's economy ministry said in a statement about China's new rules said that most rare-earth-related materials needed domestically are supplied by Europe, the United States and Japan. "The impact on the operation of the semiconductor industry still requires further stocktaking and assessment. We will continue to monitor changes in raw material costs and any indirect effects that supply-chain adjustments may bring," it said. Taiwan is home to the world's largest contract chipmaker TSMC, the producer of the vast majority of advanced chips that are a key component of artificial intelligence applications. Earlier on Sunday, China defended its curbs on exports of rare earth elements and equipment, saying they were motivated by concern about these metals' military applications at a time of "frequent military conflict". (Reporting by Ben Blanchard; Editing by Raju Gopalakrishnan)

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