'TSMC Seeks Factory-Equipment Alternatives To Thwart China's Rare Earths Grip, Sources Say' - Reuters Exclusive

• TSMC seeks equipment with fewer or no rare-earth components, sources say
• Move aims to shield chip factories from Chinese export curbs
• Rare-earth magnets power vital fab equipment motors

Taiwan's TSMC is exploring ​alternatives to rare-earth components in factory equipment, three people familiar with the matter said, aiming to ‌reduce the risk that Beijing's export controls could disrupt operations at plants that make the world's most advanced chips.

The move, reported for the first time, underscores how China's grip on rare earths has become a vulnerability for the global semiconductor industry after the ​country last year put certain rare-earth materials, magnets and related processing technology under export controls, requiring licences.