On October 22, 2026, Reuters reported that Taiwan Semiconductor Manufacturing Company (TSMC) had surveyed suppliers about rare-earth-free motors for factory-automation equipment. Two people familiar with the discussions said they remained at an early stage and had not led to a broad rollout.
What a rare-earth-free motor could change
Rare-earth magnets are used in motors that power moving parts in industrial equipment. If a motor were designed without those materials, it could reduce reliance on rare earths in that component, rather than simply switch to another supplier for the same magnet.
Reuters reported that China placed certain rare-earth materials, magnets, and related processing technology under export controls requiring licenses in 2025. People familiar with TSMC’s exploration described the inquiry as a response to concern about possible supply disruption. A shortage of specialized parts could affect chip production and, downstream, supply chains for smartphones, AI systems, data centers, and defense equipment.
The inquiry had not led to a broad rollout
Two sources told Reuters that TSMC’s discussions with suppliers were still early-stage and had not resulted in a broad rollout of rare-earth-free equipment. TSMC declined to comment to Reuters.
The reported inquiry concerns motors for factory automation. A motor that does not use rare-earth materials could reduce dependence on them at that component, but the reported discussions do not amount to a completed change across TSMC’s factories.
Taiwan’s ITRI project is separate
Taiwan has a separate rare-earth technology project involving the Industrial Technology Research Institute (ITRI). ITRI said it was working with the Taiwan Ministry of Economic Affairs’ Department of Industrial Technology on that project. Reuters described it separately from TSMC’s supplier inquiry; the project was not identified as a source of motors for TSMC.
