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China's tungsten export curbs threaten Japan's AI chip supply chain

China's new restrictions on exports of strategic mineral tungsten directly threaten Japan's AI chip production ecosystem. According to SCMP analysis, Japan sources 78% of its tungsten supply from China, and the mineral is critical for semiconductor lithography equipment and EUV masks. Tokyo is accelerating its search for alternative suppliers as the strategic message behind Beijing's policy is debated.

Semiconductor chip wafer production line in a clean room
Semiconductor chip wafer production line in a clean roomPhoto: Tima Miroshnichenko / Pexels
South China Morning Post4 h agoASML RNECF
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SCMP reports China's Commerce Ministry last month set a monthly export ceiling of 18,000 tonnes on tungsten. That is about half of the estimated 35,000 tonnes annual supply that Japan's semiconductor production needs. Tokyo Tower Semiconductor and Renesas Electronics have issued supply concerns warnings.

Ken Sakaguchi, a spokesman for Japan's Ministry of Economy, Trade and Industry (METI), told SCMP: "China's unilateral restriction risks disrupting the global semiconductor ecosystem." The tungsten collimators in ASML's EUV lithography equipment are under supply pressure.

Reuters reports Vietnam, Bolivia and Australia are being assessed as alternative tungsten sources. The China Tungsten Industry Association said the restrictions were imposed on "environmental and long-term reserve management grounds". Turkey, with its tungsten reserves in Bilecik, is a small-scale alternative supplier candidate. This is not investment advice.

TradeTechCommoditiesASMLRNECFAsiaSouth China Morning Post
Source: South China Morning Post
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This article is an AI-curated summary of the original story published by South China Morning Post. The illustration is a stock photo by Tima Miroshnichenko from Pexels and is not from the original story.

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