It is safe to say that the tragic earthquake did not affect the global semiconductor supply chain after all.
Taiwan Semiconductor Manufacturing Co (TSMC) resumed work at its construction sites in Taiwan within a day. The company had temporarily paused operations after the strongest earthquake in 25 years hit Taiwan on April 3. The quake raised concerns for global semiconductor supply chain
TSMC is the world’s largest contract chip manufacturer and a key supplier for companies like Apple and Nvidia. Naturally, it has equipped its facilities with the necessary measures to withstand Taiwan’s unstable earth. The company had halted production for inspections following the quake.
TSMC reported that its initial inspections showed that safety systems at its chip fabs were functioning normally, and all personnel were safe. While some facilities were evacuated, operations were only partially impacted. Damage was limited to a small number of tools at some facilities and did not affect critical chip-making equipment. The company uses chip-making tools from Dutch equipment manufacturer ASML Holding.
The recovery of production tools at TSMC’s fabrication facilities exceeded 80% as of Thursday, and new fabs are expected to reach full recovery soon. It is safe to say that the tragic earthquake did not affect the global semiconductor supply chain after all.
Despite the quake’s impact, TSMC’s shares went up about 3%, indicating confidence in the company’s ability to manage the situation and maintain its position as a leading chip manufacturer.
