TSMC resumes chip manufacturing a day after 7.4 magnitude earthquake hits Taiwan

Following a shutdown due to an earthquake, Taiwan Semiconductor Manufacturing Company (TSMC) has now resumed operations at its fabrication sites in Taiwan. The company was able to swiftly recover, and thankfully, no critical chipmaking equipment was damaged. As a result, there is expected to be minimal disruption to chip supply, and analysts are confident that any potential impact on TSMC’s operations can be managed with only limited downside.

Despite being struck by a 7.4 magnitude earthquake on Wednesday, Taiwan’s advanced technological measures and revised building codes proved effective in mitigating damage and casualties. This event highlighted the resilience of the country in the face of seismic events. While some disruptions were caused to chip production, TSMC’s initial inspections revealed that safety systems at their chip fabs were functioning normally and all employees had safely returned to work shortly after the disaster.

Despite facing significant impact, TSMC reported that certain production lines in affected areas may require more time to return to fully automated production. However, as of Thursday, the overall tool recovery of TSMC’s fabrication facilities has surpassed 80%. The newer Fab 18 in Tainan is projected to reach full recovery by tonight.

TSMC is a leading semiconductor foundry, providing foundry services to a diverse portfolio of global customers and partners such as Apple, Intel, Qualcomm, Nvidia, Advanced Micro Devices, and others. The company generates its income by selling chips to clients all around the world, with the largest market being North America. This market alone contributes to over 65% of TSMC’s total revenue.

TSMC is the primary customer of Apple, handling all of the company’s chip requirements. Presently, TSMC is utilizing the 3nm process to produce cutting-edge chips. To meet the growing demand for advanced chips, TSMC is expanding its facilities in the United States and Japan. Additionally, many countries are seeking to domestically manufacture semiconductors as a solution to the supply chain challenges faced during the COVID-19 crisis.

According to a report by Reuters, TSMC has resumed construction work at its sites after a temporary shutdown due to an earthquake on April 04, 2024.