Taiwan’s TSMC is looking for alternatives to rare-earth components in its factory equipment to lessen the risk of disruptions from China’s export controls. This is significant for the global semiconductor industry since China has restricted the export of certain rare-earth materials and related technologies, affecting the supplies needed for advanced chip production. Rare-earth magnets are essential for motors in automated machinery, and a shortage could interrupt chip production that supports various industries, including smartphones, AI, and defense.
TSMC, the largest contract chipmaker, is currently surveying suppliers about using motors that do not rely on rare-earth components. This initiative is still in the early stages and has not yet led to widespread use of alternative equipment. TSMC did not respond to requests for comments on these plans.
In response to these challenges, both the United States and Taiwan are seeking ways to reduce their dependence on Chinese supply chains for rare-earth materials. The US has engaged with Taiwan to develop alternative supply sources and improve processing capacities. Taiwan’s government is also supporting research initiatives to create rare-earth technologies, with hopes of meeting half of its domestic needs within three years. ITRI is collaborating with relevant authorities to plan a rare-earth project but did not provide additional details.
With information from Reuters
