EL7.AI
CommoditiesMedium•5 November 2026•
1 min read

China's Tungsten Export Curbs Squeeze AI Chip Supply Chain

Key Facts

1China's export controls on critical metals have disrupted supplies of micro drill bits used in semiconductor manufacturing.
2Restrictions on tungsten are impacting the production of printed circuit boards and chip substrates required for AI.

China has implemented export curbs on tungsten, causing significant disruptions to the hardware supply chains required for artificial intelligence. Nikkei Asia reported that these controls have directly impacted the availability of micro drill bits used in semiconductor manufacturing and chip substrates. The move is part of a broader Chinese strategy to manage the export of critical minerals essential to global technology industries.

The restrictions specifically affect the production of printed circuit boards necessary for powering advanced AI systems. This geopolitical tension emerges alongside mixed industrial performance data from China, where the official Manufacturing PMI was 49.3 on October 31, 2026, while the Caixin Manufacturing PMI reached 52 on November 2, 2026.

China is scheduled to release critical trade data on November 10, 2026, including annual export and import figures and the balance of trade. These releases will provide further insight into trade volumes and the impact of restrictions on the flow of critical minerals and industrial goods.