GoKawiilTSMC asks suppliers for chip equipment free of Chinese rare-earth magnets
TSMC has reportedly begun asking its equipment suppliers whether they can build factory automation machinery using motors that avoid rare-earth materials, according to a Reuters report citing people familiar with the matter. The move targets electric motors in TSMC's fabrication plants that typically rely on permanent magnets made from elements like neodymium, dysprosium and terbium.
GoKawiil's interpretation of the reporting above, not reported fact.
China controls roughly 70% of global rare-earth mining and around 90-95% of refining and magnet production, according to the USGS and IEA, and it has tightened export controls on these materials twice in 2025. This gives Beijing significant leverage over chipmaking supply chains, and TSMC's supplier outreach suggests the company is trying to reduce exposure to potential future disruptions, though it is not confirmed whether substitute equipment is readily available or how quickly it could be deployed.
- TSMC is exploring rare-earth-free automation equipment with its suppliers, per Reuters.
- China dominates rare-earth mining, refining and magnet production, per USGS and IEA data.
- China has expanded export controls twice in 2025, covering more elements and even foreign-made products containing Chinese-origin materials.
Source: tomshardware.com — Etiido Uko, 2026-10-22
Published there as: “TSMC is seeking chipmaking equipment that doesn't contain Chinese rare-earth magnets”
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