Businesses across the global semiconductor supply chain are bracing themselves for disruptions from China’s most targeted move yet to limit their supplies of rare-earth materials as part of an escalating trade war between the Asian nation and the US.
The restrictions may lead to weeks-long delays in shipments for ASML Holding NV, the only manufacturer in the world of machines that make the most advanced semiconductors, a person familiar with the company said. The company is preparing for disruptions, particularly due to a clause that requires foreign firms to seek China’s approval for re-exports of products containing its rare earths, said the person, who asked not to be identified discussing private matters and noted that ASML is lobbying Dutch and US allies for alternatives. The company declined to comment.