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

Taiwan Semiconductor Manufacturing Company (TSMC) has resumed work at its fabrication sites in Taiwan after an earthquake-led shutdown. The company was able to recover quickly, with no damage to critical chipmaking equipment, ensuring minimal disruption to chip supply. Despite initial concerns, analysts believe the impact on TSMC's operations should be manageable, with limited downside.

TSMC's advanced technological measures and revised building codes helped mitigate damage and casualties, which showcased Taiwan's resilience to seismic events. The earthquake, with a magnitude of 7.4, struck Taiwan on Wednesday, causing some disruptions to chip production. However, TSMC's initial checks showed that safety systems at its chip fabs were operating normally, and all personnel were safe and had returned to their workplaces shortly after the disaster.

The chipmaking company reported that some production lines in areas that faced greater impact were likely to take more time to return to fully automated production. Despite that, TSMC's overall tool recovery of its fabrication facilities exceeded 80% as of Thursday. Newer fabs, like the Fab 18 in Tainan, are expected to reach full recovery later tonight.

TSMC is the world's largest dedicated semiconductor foundry, offering foundry services to a wide range of global customers and partners, including the likes of Apple, Intel, Qualcomm, Nvidia, Advanced Micro Devices, and more. TSMC's revenue comes from selling chips to clients worldwide, with North America being its biggest market, contributing over 65% of the company's revenue.

Apple is TSMC's largest client, and it has outsourced the entirety of its chip demand to the company. Currently, the chipmaking company is producing one of the most advanced chips using the 3nm process. TSMC is also expanding its fabs in the U. S. and Japan to fulfill the ever-increasing need for advanced chips and as more countries are looking to manufacture semiconductors locally in order to reduce the supply chain hurdles that unfolded during the COVID-19 pandemic.

Source: Reuters

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