TSMC's Chipmaking Halted by Taiwan's 7.4-Magnitude Earthquake

TSMC's Chipmaking Halted by Taiwan's 7.4-Magnitude Earthquake
TSMC's Chipmaking Halted by Taiwan's 7.4-Magnitude Earthquake

TSMC's Chipmaking Operations Pause Following 7.4-Magnitude Earthquake in Taiwan

Taiwan Semiconductor Manufacturing Co. (TSMC) briefly suspended chipmaking operations on April 3, 2024, after a 7.4-magnitude earthquake struck Taiwan. The company initiated its earthquake safety protocols, evacuating workers. Bloomberg reported that TSMC is assessing the impact on its operations and anticipates resuming production overnight.

The earthquake's epicenter was off Taiwan's east coast, prompting tsunami warnings in several countries. It was followed by a series of aftershocks, including a significant 6.5-magnitude tremor. This is the most powerful earthquake to hit Taiwan since the 1999 Jiji earthquake.

Impact on Chip Manufacturing

TSMC is a major player in chipmaking, responsible for producing high-end chips for companies like Apple, NVIDIA, and AMD. The earthquake also impacted United Microelectronics Corp. (UMC), which manufactures chips for AMD and other companies in the smartphone, wireless communications, and automotive sectors.

Potential Disruptions

Analysts have raised concerns that even minor disruptions to high-end chipmaking can have significant consequences. This type of manufacturing requires uninterrupted operations in a vacuum state for extended periods. TSMC's current dominance in this segment means that a disruption could affect a wide range of products, from PCs and smartphones to AI servers and smart gadgets.

Monitoring the Situation

TSMC is actively assessing the situation and expects to resume production shortly. The company's facilities are primarily located on Taiwan's north and west coasts,

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