TSMC seeks factory-equipment alternatives to thwart China’s rare earths grip, sources say

What happened: TSMC is exploring alternatives to rare-earth components in factory equipment, surveying suppliers on rare-earth-free motors for automation equipment, three people familiar with the matter said. Why it matters: China placed certain rare-earth materials, magnets and processing technology under export controls last year, and rare-earth magnet shortages could disrupt chip production for smartphone, AI, data center and defense supply chains. The effort is at an early stage with no broad rollout yet. Coverage: 3 outlets in 24h

TSMC is exploring alternatives to rare-earth components in factory equipment, surveying suppliers on rare-earth-free motors for automation equipment, three people familiar with the matter said.

China placed certain rare-earth materials, magnets and processing technology under export controls last year, and rare-earth magnet shortages could disrupt chip production for smartphone, AI, data center and defense supply chains. The effort is at an early stage with no broad rollout yet.