TSMC Asks Suppliers for Rare-Earth-Free Fab Motors, Reuters Reports

Tom's Hardware cites the U.S. Geological Survey as saying China accounts for roughly 70% of global rare-earth mining. It cites the International Energy Agency as saying China controls around 90% of refining and approximately 95% of finished permanent magnets.

In April 2025, China placed seven medium and heavy rare earths and the magnets made from them under export controls, requiring case-by-case licences. On October 9, 2025, it expanded the controls to five more rare earths, processing technology and equipment, and foreign-made products containing more than 0.1% Chinese-origin rare earths. China later suspended that expansion until November 10, 2026, and Tom's Hardware says the suspension has now been extended by a further 90 days.

Rare-Earth-Free Motor Alternatives for Fab Automation

Tom's Hardware lists several ways to avoid rare-earth magnets: conventional induction motors, switched-reluctance motors, and permanent-magnet motors that use ferrite magnets. It says these options typically bring different trade-offs in efficiency, size, power density, precision and control requirements, which matters in fab automation where precision is central.

Outside TSMC, the article says Taiwan is backing the Industrial Technology Research Institute (ITRI) to set up a pilot rare-earth production line within three years that could supply about 50% of Taiwan's domestic demand. It adds that the United States is working with Taiwan and other partners on alternative supply.

What TSMC Has Not Confirmed

The report does not name the suppliers approached, the tool types affected, a timeline or any volume of equipment. It does not say whether TSMC has already hit a shortage. Whether suppliers can requalify motors for fab tools without hurting precision, and how long that would take, is the open question to watch. Related Voltgrid coverage of TSMC's fab build-out includes the Fab 22 accident that halted 2nm Phase 4 steel work.