Major Earthquake Forces Taiwanese Companies to Halt Chip Production: Electronics to Get Costlier

Published  April 3, 2024   0
S Staff
Author
Taiwan-Semiconductor

The evacuation proves that chip manufacturing on a large-scale could be affected by Taiwanese companies

Electronic devices such as mobile phones, computers, and other consumer electronics are going to be expensive for the coming months as a result of the destructive earthquake of 7.4 that affected Taiwan. According to global media reports, both TSMC and its rival, United Microelectronics Corp. (UMC), have evacuated the chip making section of their facilities.

The evacuation proves that chip manufacturing on a large-scale could be affected by both of these advanced manufacturers. TSMC is the major contract chip manufacturer for giants like NVIDIA, MediaTek, and Apple. The company has completely shifted its staff to specific areas and is now occupied with calculating the impact of this massive earthquake. On the other hand, UMC has also stopped its operations in certain units and evacuated facilities in Tainan Hubs and Hsinchu.

ASE Technology and TSMC spearhead the entire international chip market, which produces top-notch chipsets for numerous firms, from automotive to iPhones. As per reports, around 80-90 percent of all silicon chips appear from Taiwan, either in the form of silicon wafers or finished SoCs. It must be noted that Taiwan is situated close to the fault line, where two tectonic plates meet, which is why it is prone to massive earthquakes. 

Most of the time, Taiwanese factories are affected by minor seismic activity. Therefore, a major attack can destroy the entire semiconductor facility. In a press conference, a TSMC spokesperson said, “TSMC’s safety systems are functioning normally. As per company protocol, certain fabs were evacuated to ensure personnel safety. We are currently in the process of assessing the extent of the impact."