Core Viewpoint - China's new export regulations on rare earths are seen as a significant response to U.S. pressure, potentially impacting global semiconductor supply chains, particularly affecting ASML, the sole manufacturer of advanced semiconductor equipment [1][4]. Group 1: Impact on Companies - ASML may face shipment delays of several weeks due to China's new regulations, which require foreign companies to obtain approval before re-exporting products containing Chinese rare earths [1]. - U.S. chip companies are assessing the impact of rising rare earth magnet prices, which are critical in the chip supply chain, and are concerned about potential supply chain disruptions due to China's export licensing system [2][4]. - Major chip manufacturers like Intel, TSMC, and Samsung rely on ASML's equipment for semiconductor production, indicating a widespread impact across the industry [4]. Group 2: Regulatory Changes - China's new regulations, effective December 1, will require foreign companies to obtain approval for exporting rare earth-related items that contain 0.1% or more of Chinese heavy rare earths [7]. - The regulations also cover items produced using Chinese rare earth extraction, refining, and manufacturing technologies, with immediate implementation for certain items [7]. - The Chinese government emphasizes that these measures are in line with international practices for dual-use items and aim to protect national security and interests [9][10]. Group 3: Global Reactions - The U.S. and European countries are expressing concern over China's tightening of export restrictions on critical minerals, with Germany and the EU discussing the implications at national and EU levels [9]. - Experts note that China's export controls could significantly impact semiconductor manufacturers and tool manufacturers that integrate rare earth magnets into their products [4][8]. - The situation highlights the vulnerability of the semiconductor supply chain, which relies heavily on specialized equipment and complex processes [8].