{
  "id": 16052203,
  "title": "TSMC is seeking chipmaking equipment that doesn't contain Chinese rare-earth magnets",
  "url": "https://urgent.news/2026/10/22/tsmc-is-seeking-chipmaking-equipment-that-doesnt-contain-chinese-rare",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-10-22T13:45:00.000Z",
  "source": {
    "name": "Tom's Hardware",
    "slug": "tom-s-hardware",
    "url": "https://www.tomshardware.com/tech-industry/semiconductors/tsmc-is-seeking-chipmaking-equipment-that-doesnt-contain-chinese-rare-earth-magnets-asks-suppliers-to-provide-alternative-motors-as-export-controls-threaten-fab-operations"
  },
  "original_language": "en",
  "account": "Taiwan Semiconductor Manufacturing Company, the world's leading contract chip maker, is searching for factory equipment that doesn't incorporate Chinese rare-earth magnets. This strategy aims to lessen its reliance on materials controlled by China and prevent production interruptions due to Beijing's export restrictions. According to a Reuters report from October 22, TSMC has started approaching its equipment suppliers to inquire about providing automation machinery with motors that don't need rare-earth materials. TSMC, a major player in the semiconductor industry, produces chips for major tech companies like Nvidia, Apple, Broadcom, and Qualcomm. Its factories, highly automated production facilities, depend on industrial machinery with powerful permanent magnets derived from rare-earth elements like neodymium, dysprosium, and terbium. China controls approximately 70% of global rare earth mining, 90% of refining, and around 95% of finished permanent magnets, effectively monopolizing this crucial supply chain. In April 2025, China imposed export controls on seven rare earths and items containing them, including magnets, necessitating exporters to obtain individual approvals and licenses. This measure was extended in October 2025 and has now been further extended by 90 days. TSMC's actions are intended to mitigate the potential risks these controls could pose to its production. Despite the availability of alternative materials, the shortage of specialized motor components could complicate the maintenance, repair, and expansion of its production equipment. Various technological methods exist to circumvent the use of rare-earth magnets, such as conventional induction motors, switched-reluctance motors, and ferrite magnets as replacements. However, these alternatives often entail trade-offs in efficiency, size, power density, precision, and control requirements. Taiwan and the United States are concurrently working to establish domestic rare-earth production capabilities, aiming to reduce dependence on Chinese supply chains. The Taiwanese government is supporting the Industrial Technology Research Institute in developing a pilot production line that could supply approximately 50% of Taiwan's domestic rare-earth demand within three years. Meanwhile, the U.S. is collaborating with Taiwan and other partners to develop alternative sources of supply, enhance processing capacity, and bolster supply chain resilience.",
  "summary": "TSMC is reportedly asking equipment suppliers for factory machinery that doesn't use rare-earth components, as the chipmaker seeks to reduce exposure to China’s dominance of critical minerals and permanent magnets.",
  "key_points": [
    "TSMC seeks chipmaking equipment without Chinese rare-earth magnets.",
    "Company aims to reduce reliance on China-controlled materials.",
    "TSMC produces chips for Nvidia, Apple, Broadcom, Qualcomm."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}