Exclusive-TSMC seeks factory-equipment alternatives to thwart China’s rare earths grip, sources say
The world’s largest contract chipmaker is weighing rare-earth-free motors to limit supply risks that could disrupt chip production for smartphone, AI and defense customers.
- TSMC surveyed suppliers on adopting rare-earth-free motors for factory equipment, aiming to reduce reliance on components subject to Beijing's export controls on critical materials.
- Global semiconductor vulnerabilities intensified after China implemented export controls on rare-earth materials, magnets, and processing technology last year, threatening chip production across smartphone, AI, and defense supply chains.
- The Industrial Technology Research Institute is collaborating with Taiwan's Ministry of Economic Affairs to establish a pilot production line within three years that could meet an estimated 50% of the island's domestic demand.
- Raymond F. Greene, director of the American Institute in Taiwan, confirmed the United States is partnering with Taipei to diversify supply chains and expand processing capacity for critical minerals.
- Discussions regarding rare-earth-free equipment remain at an early stage with no broad rollout yet, as the company seeks to mitigate potential supply disruptions from China.
14 Articles
14 Articles
Taiwanese TSMC is exploring alternatives to rare earth components in their factory equipment, said three people familiar with the subject, seeking to reduce the risk that Beijing export controls may interrupt operations on plants that produce the world's most advanced chips. Exclusive material for subscribers. To have full access, access the material link and register.
TSMC Seeks Alternatives to China-Controlled Rare Earths to Safeguard Chip Production
Taiwan’s TSMC is looking for alternatives to rare-earth components in its factory equipment to lessen the risk of disruptions from China’s export controls. This is significant for the global semiconductor industry since China has restricted the export of certain rare-earth materials and related technologies, affecting the supplies needed for advanced chip production. Rare-earth magnets are […] The post TSMC Seeks Alternatives to China-Controlled…
TSMC is turning to equipment redesign to reduce China’s rare-earth leverage
Taiwan Semiconductor Manufacturing Company is examining whether changes to the machinery inside its factories could reduce its exposure to Chinese restrictions on rare-earth exports. The initiative highlights a vulnerability beneath the semiconductor industry’s technological sophistication: producing advanced chips depends on industrial components whose supply can be influenced by governments far beyond the factory gates. The company had asked s…
TSMC consults its suppliers on engines that do not rely on rare earth magnets, while China's export controls create potential risks for the supply and maintenance of industrial equipment.
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