TSMC seeks chip tools free of Chinese rare earths, Reuters says

TSMC is hunting for factory equipment that would cut its reliance on rare earths controlled by China, Reuters reported on Oct 22, citing people it did not name. The report appeared at 4:22 p.m. Taipei time, after the Taiwan market had shut for the day. TSMC has not commented on it.

Later that evening, Tom’s Hardware gave more detail. It said TSMC has asked the companies that supply its tools for different motors, so its chipmaking machines would not rely on magnets built with Chinese rare earths. The outlet linked the request to export controls that, in its view, could put fab operations at risk. That link is Tom’s Hardware’s reading, not something TSMC has said.

What the fabs produce

The tools in question run plants that brought in NT$511.86 billion (about US$15.70 billion) in September, according to TSMC’s monthly revenue report. That was 54.65% more than a year earlier and 0.57% less than August. TSMC said the gain came from increased demand for its advanced-process products. Sales for the first nine months reached NT$3.90 trillion (about US$119.62 billion), up 41.11% on the year.

Taipei has yet to trade on it

Because the news broke after the bell, the Taipei close still reflects Oct 21. TSMC finished that day at NT$2,420, about US$74.25, up 0.62% from Oct 20.

⤢

The stock has slipped 2.42% since the Sept 30 close. In US dollar terms the drop is 4.6%, as the NT dollar weakened 2.29% over the same stretch, from 31.864 to 32.593 per dollar.

---

Information only, not investment advice.