Market Chatter: TSMC Looks to Reduce Reliance on Rare Earths in Chipmaking Equipment

MT Newswires Live10-22 17:45

Taiwan Semiconductor Manufacturing (TPE:2330), d/b/a TSMC, is evaluating equipment options that would cut its dependence on rare-earth materials, seeking to limit the risk of Chinese export restrictions disrupting chip production, Reuters reported Thursday, citing three people familiar with the matter.

The chipmaker has consulted suppliers about using motors without rare-earth components in automated factory machinery, though the effort remains preliminary and has yet to result in widespread adoption.

The initiative comes as Washington and Taipei pursue ways to diversify critical-mineral supplies. Taiwan's Industrial Technology Research Institute said it is working with the economy ministry on a rare-earth project, while TSMC declined to comment to Reuters.

TSMC did not immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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