TSMC seeks alternatives to Chinese rare-earth magnets in chipmaking

• TSMC, the world's largest contract chip manufacturer, is seeking alternative machinery without rare-earth components.
• Rare-earth magnets are used in motors that power moving parts in industrial equipment, including machinery in highly automated factories.
• TSMC aims to reduce its dependence on China-dominated materials and avoid disruptions caused by China's export controls.
• The Taiwanese company has begun approaching its equipment suppliers for alternatives to mitigate supply chain vulnerabilities.
• Geopolitical tensions and resource scarcity are driving TSMC's efforts to secure stable and reliable sources of critical materials.