US chip and jet engine manufacturers feel impact of China’s rare earth export sanctions
American producers of chips and jet engines have begun to experience the effects of Chinese sanctions on the export of rare earth metals, implemented in 2025. This development is significant for the US technology and defense sectors due to their reliance on these materials.
In 2026, the shortage of scandium and yttrium—essential for manufacturing 5G chips and jet engines—is intensifying. Supplies of these metals from China to the US have decreased nearly twentyfold, while their price has surged 69 times during the same period.
This trend threatens the stability of supply chains and could lead to higher prices for high-tech products in the United States in the near future.
