The increasing demand for rare earth elements (REEs) in advanced technologies, particularly in semiconductor and chip manufacturing, has led to rising production costs and significant environmental impacts due to the extraction and purification processes. The uneven geographical distribution of REE resources further complicates global supply chains, posing challenges for sustainable semiconductor manufacturing. In response, the recycling of REEs from end-of-life electronic products has emerged as a promising solution to address these issues. This article provides an overview of REE recycling processes in the semiconductor and chip industries, discussing the role of rare earth metals in these technologies and the importance of recycling from both economic and environmental perspectives. This article highlights various current and emerging recycling technologies, focusing on the chemical and hydrometallurgical routes, which are preferred due to their lower environmental impact. Recent research and developments in REE recycling are explored, including new manufacturing approaches that could enhance the efficiency and sustainability of these processes. This article also presents case studies of successful industrial implementations of sustainable recycling technologies, demonstrating their practical applications. Finally, the article outlines the potential for improving REE recycling in semiconductor manufacturing, emphasizing its positive impact on both the environment and the economy. It aims to serve as a valuable resource for researchers, journals, and funding agencies, highlighting the significant role of REE recycling in promoting sustainable manufacturing in the semiconductor, chip, and related industries. © The Author(s) 2025.