Taiwan Semiconductor Manufacturing Co. (TSMC) explores chipmaking equipment free of rare earth elements. This mitigates risks from China's export controls. The world's largest contract chipmaker reportedly asks suppliers about rare earth-free motors for factory automation equipment.
This initiative directly responds to Beijing's export restrictions on rare earth materials and magnets. These are critical components for semiconductor manufacturing machinery motors.
China dominates the global supply. It accounts for approximately 90% of refining. TSMC seeks alternatives to de-risk its supply chain and prevent potential disruptions to the production of the world's most advanced chips. The effort remains in its early stages.