Malaysia allows first raw rare earth exports; TSMC seeks alternatives

· Trade · Malaysia · China

Malaysia allowed its first export of raw rare earths under new rules, after releasing guidelines earlier in October for conditional exports. Separately, TSMC is seeking alternatives to Chinese factory equipment that relies on rare-earth magnets, according to Nikkei Asia. The moves reflect widening efforts to diversify supply chains for critical minerals, which are essential to semiconductors, magnets and defence equipment. China dominates global rare-earth processing, giving it leverage over industries worldwide. Malaysia has been trying to develop its own rare-earth sector and capture more of the value chain.

Why it matters：Malaysia's export and TSMC's search for alternatives show how China's rare-earth dominance is reshaping supply chains for chips and defence.

Key points

  • Malaysia allowed its first raw rare-earth export under new rules
  • Guidelines for conditional exports were released earlier in October
  • TSMC is seeking alternatives to equipment relying on rare-earth magnets

Sources (original reporting)

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