Exclusive-TSMC seeks factory-equipment alternatives to thwart China’s rare earths grip, sources say
By Wen-Yee Lee and Fanny Potkin TAIPEI/SINGAPORE, Oct 22 (Reuters) Taiwan s TSMC is exploring alternatives to rare-earth components in factory equipment, three people familiar with the matter said, aiming to reduce the risk that Beijing s export controls could disrupt operations at plants that make the world s most advanced chips. The move, reported for the first time, underscores how China s grip on rare earths has become a vulnerability for the global semiconductor industry after the country last year put certain rare-earth materials, magnets and related processing technology under export controls, requiring licences. Rare-earth magnets are commonly used in motors that power moving parts in industrial equipment, including machinery found in highly automated factories such as those operated by TSMC. A shortage of such specialised parts could disrupt chip production for customers in smartphone, AI system, data centre and defence supply chains. TSMC, the world s largest contract