Xin Lang Cai Jing·2025-10-17 04:23Core Viewpoint - The new rare earth technology control measures introduced by China are not specifically aimed at Pakistan's transfer of rare earths to the U.S., but rather pose a significant risk to companies like ASML, which manufactures chip-making machinery [1][6][10]. Group 1: Impact on ASML and Chip Manufacturing - ASML is preparing for potential delays in product shipments due to China's new restrictions, which could affect production [1][6]. - The new regulations require foreign companies to apply for approval to sell products containing Chinese rare earth elements, creating operational challenges for ASML and similar firms [6][14]. - The reliance on rare earth elements in chip manufacturing machinery highlights the critical role these materials play in the global supply chain [4][10]. Group 2: Price and Supply Chain Implications - The immediate effect of China's measures is expected to be an increase in the price of rare earth magnets, which are essential in chip production [12][14]. - The uncertainty surrounding supply chains has led to confusion among Western companies, as they assess which products contain Chinese rare earths and how to adapt to the new regulations [14][16]. - Major chip manufacturers like Intel, TSMC, and Samsung depend on ASML's products, indicating that disruptions in the supply of rare earths could lead to significant production fluctuations [16][18]. Group 3: Western Response and Future Outlook - Western companies, including ASML, are likely to seek alternative solutions or lobby their governments for negotiations with China to mitigate the impact of these restrictions [12][18]. - The long-term inability of Western nations to establish a self-sufficient rare earth supply chain poses a significant challenge, as they lack the necessary extraction and processing capabilities [21][25]. - The ongoing geopolitical tensions and trade disputes have led to a situation where Western companies are caught between government policies and their operational needs, creating a complex dynamic in the industry [29][34].