Highlights

• Taiwan's semiconductor industry faces critical vulnerability with 95% of rare earths imported from China, creating a dangerous single point of failure for global chip manufacturing.
• ANZCham Taiwan proposes a Taiwan-Australia-Japan critical minerals partnership to reduce Chinese dependency, though replacing China's refining dominance remains challenging.
• The white paper signals Taiwan may join the US, Japan, and EU in treating rare earths as strategic assets amid growing geopolitical supply chain risks.

---

So is a semiconductor built on a fragile mineral lifeline?  You bet it is.  A new white paper from Australia New Zealand Chamber of Commerce in Taiwan (opens in a new tab) (ANZCham Taiwan) Taiwan has delivered (opens in a new tab) a message that should reverberate across global supply chain circles: Taiwan imports more than 95% of its rare earths from China, creating a single point of failure for the world’s most important semiconductor hub. With Taiwan producing zero rare earth raw materials and only “one or two” domestic refiners, the chamber argues the island’s critical-mineral posture is dangerously concentrated.

For rare earth investors, this is more than a local warning—it signals that Taiwan may soon join the United States, Japan, and the EU in aggressively reshaping rare earth procurement.

A Fault Line Beneath the Chip Industry

The white paper highlights that Taiwan imports roughly 3,000 tonnes of rare earth elements per year, the backbone for semiconductor manufacturing, precision tools, and permanent magnets. ANZCham makes a clear historical point: when China imposed export controls on gallium in 2023, global prices jumped 27% in months. Supply chains panicked. Taiwan took the hit.

The chamber argues that relying on one supplier—especially one capable of geopolitical weaponization—is untenable. Their preferred solution: deepen ties with Australia, home to the world’s largest lithium mine and the leading ex-China rare earth ore producer, and potentially add Japan as a processing partner.

A Proposal With Promise—and Problems

Here’s where the article edges into speculation. While the call for a Taiwan–Australia–Japan critical minerals triangle is strategically sound, the suggestion that these partners could quickly replace China is optimistic.

The article itself acknowledges the challenge: the U.S. has spent years trying to unwind its own dependency and still relies heavily on Chinese refining. Taiwan would face similar hurdles.

China’s refining dominance—built on decades of environmental tolerance, industrial subsidies, and ruthless cost competition—remains the defining structural advantage. CIER President Lien Hsien-ming’s (opens in a new tab) remarks are accurate: many countries with rare earth deposits “are reluctant” to host refining, and China has historically undercut emerging competitors.

The Strategic Signal Behind the Story

This Taiwan-focused piece is not misinformation—but it does carry clear narrative framing:

• China is depicted as both indispensable and opportunistic.
• Taiwan is portrayed as vulnerable yet capable of shifting allegiance if given partners with scale and credibility.

Most importantly, the story aligns with a broader trend: chip-producing economies are finally treating rare earths as strategic assets, not commodity inputs.

© 2025 Rare Earth Exchanges™ – Accelerating Transparency, Accuracy, and Insight Across the Rare Earth & Critical Minerals Supply Chain.