The recent powerful earthquake, the most significant in Taiwan since 1999, is expected to cause disruptions across Asia’s semiconductor supply chain, analysts suggest.
Chipmakers such as TSMC and UMC have halted some operations to inspect facilities and ensure the safety of their employees.
The earthquake, measuring 7.4 on the Richter scale, struck Taiwan’s eastern coast near Hualien County on April 3, resulting in nine fatalities and over 900 injuries.
Taiwan holds a significant position in the global semiconductor supply chain, being home to major chip manufacturers like Taiwan Semiconductor Manufacturing Co (TSMC), which supplies chips to tech giants like Apple and Nvidia.
Other key players include UMC, Vanguard International Semiconductor, and Powerchip Semiconductor Manufacturing.
“To ensure the safety of personnel, some fabs were evacuated according to company procedure,” stated TSMC, noting that employees had begun returning to work.
TSMC, with facilities in Hsinchu, Tainan, and Taichung experiencing disruptions of varying degrees, may face delays in shipments and may need to increase wafer input to compensate, according to consultancy Isaiah Research.
“Mitigating the impacts of the earthquake necessitates careful measures and time to restore production and uphold quality standards, presenting additional implications and obstacles,” the consultancy noted.
