TSMC Seeks Chipmaking Gear Free of Chinese Rare-Earth Magnets

TSMC, the world's largest contract chip manufacturer, is reportedly looking for factory equipment that does not rely on rare-earth components, in an effort to limit its dependence on materials dominated by China and to protect its operations from disruption linked to Chinese export controls.

According to a Reuters report dated October 22 cited by Tom's Hardware, the Taiwanese company has started contacting its equipment suppliers to find out whether they can deliver factory automation systems fitted with motors that do not require rare-earth materials. The report attributed the information to people familiar with the matter.

TSMC runs large, heavily automated semiconductor plants. The industrial machinery in those facilities uses electric motors built with powerful permanent magnets made from rare-earth elements including neodymium, dysprosium, and terbium. The company produces chips for Nvidia, which power much of the current artificial intelligence boom, as well as for Apple, Broadcom, Qualcomm, and other technology and automotive firms.