N環球 
TSMC explores rare-earth-free factory equipment to blunt China's export-control grip
Reuters reported exclusively on Oct 22 that TSMC has surveyed suppliers on rare-earth-free motors for factory automation, aiming to reduce the risk that Beijing's export controls disrupt advanced-chip production; the effort is still at an early stage.
Why it matters
TSMC, the world's largest contract chipmaker, is exploring alternatives to rare-earth components in factory equipment, three people familiar with the matter told Reuters. The company has surveyed suppliers on using rare-earth-free motors in factory-automation equipment to reduce the risk that Beijing's export controls could disrupt operations at plants making the world's most advanced chips. Rare-earth magnets are widely used in motors powering moving parts in industrial machinery, including in highly automated chip fabs; a shortage of such specialised parts could hit chip production serving smartphone, AI system, data centre and defence supply chains.
The control backdrop
China last year placed certain rare-earth materials, magnets and related processing technology under export controls requiring licences. Reuters says this is the first time TSMC's move has been reported; two of the three people said discussions remain at an early stage with no broad rollout yet. TSMC declined to comment.
Washington and Taipei seek alternatives
The move 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.
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