Chinese tech giants such as Alibaba and Baidu have seen stock declines amid ongoing geopolitical tensions and new export restrictions requiring foreign manufacturers to obtain licenses for Chinese materials.

Taiwan, home to TSMC—the world's largest contract chipmaker—continues to produce the most advanced chips for AI applications, and current export controls do not threaten its manufacturing process.

Taiwan's government emphasizes that the current controls are unlikely to affect its chip manufacturing, but it remains vigilant about potential impacts on global supply chains.

In response to China's export restrictions, U.S. companies like USA Rare Earth Inc. have experienced stock surges, reflecting increased investor confidence in boosting domestic critical mineral production.

China's recent expansion of rare earth export controls, justified by concerns over military applications, is unlikely to significantly impact Taiwan's semiconductor industry because the controlled elements differ from those used in chip manufacturing.

While China has imposed export restrictions on certain rare earths, these mainly target materials used in electric vehicles and drones, not those critical for semiconductor production.

The impact of China's export restrictions on Taiwan's semiconductor industry remains uncertain and requires further assessment, especially regarding supply chain adjustments and raw material costs.