TSMC seeks alternative to rare earths

Taiwan’s TSMC is exploring alternatives to rare-earth components in factory equipment, cites Reuters citing inside sources. The move aims to reduce the risk that Beijing’s export controls could disrupt operations at plants that make the world’s most advanced chips.

TSMC, the world’s largest contract chipmaker, has surveyed suppliers on using rare-earth-free motors in factory-automation equipment, according to three industry executives briefed by the company on its plans. One of the people said the effort was driven by concerns about potential supply ​disruptions from China.

The move, reported for the first time, underscores how China’s grip on rare earths has become a vulnerability for ​the global semiconductor industry after the country last year put certain rare-earth materials, magnets and related processing ​technology under export controls, requiring licences.