On October 31, 2025, news emerged of China expanding its export controls on rare-earth elements, a move that threatens to create significant disruptions across the global electronics and defense supply chains. The new regulations include stricter licensing and broaden the scope of reviews to cover products derived from these critical materials, which are essential for semiconductor manufacturing. This action coincides with escalating tech tensions between Beijing and the West. The tightening of these exports could lead to longer lead times and increased costs for semiconductor giants like TSMC, which rely on a stable supply of these materials. The development adds another layer of geopolitical risk for the industry, which is already navigating complex trade dynamics. The U.S. has reportedly responded by announcing its intention to implement an additional 100% tariff on Chinese rare-earth products, further intensifying the situation.