TSMC Seeks Rare-Earth-Free Equipment Amid China Controls

TSMC is asking equipment suppliers to assess factory-automation motors that do not rely on rare-earth materials, seeking to reduce the risk that China’s export controls could disrupt operations at its advanced chipmaking plants. Rare-earth magnets are used in industrial motors, and shortages of these components could affect chip production serving smartphone, AI, data center and defense industries. The effort remains at an early stage, with no broad adoption of alternative equipment reported. The move comes as the United States and Taiwan pursue ways to diversify rare-earth supply and expand processing capacity.