TSMC seeks factory-equipment alternatives to thwart China's rare earths grip, sources say
TSM•TSMC is exploring factory equipment with fewer or no rare-earth components to reduce the risk that Chinese export controls disrupt operations. The discussions are at an early stage and have not led to a broad rollout.
1. Exploring alternatives
TSMC has surveyed suppliers about using rare-earth-free motors in factory-automation equipment, three industry executives briefed on its plans said. One person familiar with the effort said it was driven by concerns about potential supply disruptions from China.
2. Early-stage discussions
Rare-earth magnets are commonly used in motors that power moving parts in industrial equipment, including machinery in highly automated factories. The discussions have not yet resulted in a broad rollout of rare-earth-free equipment, two people familiar with the matter said.
3. Supply-chain initiatives
The effort follows statements from the United States and Taiwan that they would look for ways to reduce reliance on Chinese rare-earth and critical-mineral supply chains. Taiwan's Economy Minister Kung Ming-hsin said in February the government would support the Industrial Technology Research Institute in developing rare-earth technologies, with plans for a pilot production line within three years that could meet an estimated 50% of the island's domestic demand.
