Beijing’s recent curbs on rare earths would not directly affect Pegatron Corp’s (和碩) production, as the company’s suppliers should be able to overcome the situation, company chairman Tung Tzu-hsien (童子賢) said yesterday.
Rare earths account for only a small portion of Pegatron’s products, Tung said.
However, rare earths restrictions could hinder global economic growth indirectly in the long run, he said.
Photo: CNA
Pegatron is one of Apple Inc’s iPhone assemblers.
China last week tightened its restrictions and told companies to obtain export licenses if their products contain more than 0.1 percent of Chinese-origin rare earths by value.
The restrictions would more heavily impact high-volume users such as glass, motor and electric vehicle manufacturers, Tung said.
The impact on Taiwan’s economy would be largely indirect, especially for local chipmakers, Tung said.
As chips are high-value-added and require only a small amount of rare earths, those companies should be able to secure supply, he said.
Persistent trade disputes with China could prompt the US to boost its output of rare earths, he said.
If China’s export curbs remain in the long run, and they could trigger security concerns for other nations, and more countries could start exploring the feasibility of rare earth mining, he said.
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