TSMC evacuates its factory after the Taiwan earthquake and an interruption in chip supply is expected

The earthquake in Taiwan has resulted in the evacuation of the factory of Taiwan Semiconductor Manufacturing Company (TSMC), the largest Taiwanese chip maker, raising concerns about possible disruptions to global chip supplies and rising prices.

Taiwan’s notable reliance on semiconductor manufacturing has been a worrying issue for industry leaders and government officials for some time. As a result, there have been calls for chip-making companies to diversify their production lines beyond Taiwan’s borders.

The earthquake, with a magnitude of 7.4 on the Richter scale, has forced both TSMC and its competitor, United Microelectronics Corp. (UMC), to evacuate part of their facilities, sowing uncertainty about the production of semiconductors in the world’s leading manufacturer of advanced chips.

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TSMC, a major supplier of chips to tech giants such as Apple and NVIDIA, has moved its staff out of affected areas and is assessing the impact of the earthquake. Similarly, UMC has halted operations at some plants and evacuated facilities in Hsinchu and Tainan.

The significant disruption caused by the earthquake is anticipated to affect the supply chain of various electronic devices, which could result in price increases in the coming months. Mobile phones, personal computers and virtually all other electronic devices are likely to become more expensive as a result of this natural disaster. Government officials and industry leaders have been urged to take proactive measures to mitigate the impact of such events in the future, including diversifying chip production locations away from regions prone to seismic activity such as Taiwan.

The magnitude 7.3 earthquake struck off the coast of Hualien County, Taiwan, at 7:58 a.m. on April 3, with the epicenter about 14 kilometers from the island. This seismic event, with a depth of 12 kilometers, has generated concern due to its intensity and proximity to densely populated areas.