Key facts
- TSMC is exploring rare-earth-free motors for factory automation equipment.
- China's export controls on rare earths pose a vulnerability for the semiconductor industry.
TSMC seeks rare-earth alternatives to counter China's supply chain grip
IN SHORT
Taiwan's TSMC is exploring alternatives to rare-earth components in factory equipment, aiming to reduce reliance on China's supply chain. The move follows China's export controls on rare-earth materials, which could disrupt advanced chip production.
Key Numbers
50%Taiwan's domestic demand for rare-earth technologies that a pilot production lin
Who's Involved
TSMC
world's largest contract chipmaker exploring rare-earth alternatives
China
country with export controls on rare earths and related technology
Raymond F. Greene
director of the American Institute in Taiwan
Kung Ming-hsin
Taiwan's Economy Minister
ITRI
domestic research organisation planning a rare-earth project
↳ Why This Matters
TSMC's efforts to find alternatives to rare-earth components could impact the supply chains for smartphones, AI systems, data centers, and defense equipment, highlighting the geopolitical risks embedded in the semiconductor manufacturing process.