TSMC Seeks Fab Equipment With Motors That Avoid China-Sourced Rare Earths

TSMC is in discussions with suppliers over factory automation systems whose motors avoid China-sourced rare earths, aiming to reduce dependence and limit production disruption risks from Chinese export controls.

The chipmaker makes chips for Nvidia, Apple, Broadcom and Qualcomm, as well as automotive companies. Its highly automated plants rely on industrial machinery with permanent-magnet motors that use rare-earth materials.

A shortage of specialized motor parts could complicate repairs to or expansion of TSMC’s production equipment, even if other materials and equipment are available. Some permanent-magnet motors can use ferrite magnets instead of rare-earth magnets.