Key Points
- A 6.4 magnitude earthquake hit Southern Taiwan, temporarily halting TSMC operations.
- Inspections confirmed facilities are safe, and operations have resumed without major disruptions.
- TSMC supplies major global companies, making any disruption a potential supply chain crisis.
- Taiwan’s semiconductor industry remains vulnerable to natural disasters and geopolitical tensions.
A magnitude 6.4 earthquake struck Southern Taiwan earlier today at 12:17 am, causing structural damage to several buildings near the epicenter. The earthquake, centered approximately 37.9 kilometers (24 miles) southeast of Chiayi, affected regions near Tainan, where Taiwan Semiconductor Manufacturing Company (TSMC) operates multiple facilities. The tremor was also felt in Taichung, another hub for the company’s production sites.
Fortunately, the earthquake struck a sparsely populated mountainous area, limiting casualties and property damage. However, in Tainan, where the earthquake registered a magnitude of 5, TSMC temporarily halted operations and evacuated workers from its affected sites in Central and Southern Taiwan as a precautionary measure.
TSMC confirmed via email to Reuters that post-earthquake inspections have been completed across all facilities, ensuring structural safety and the resumption of operations. “Currently, the water supply, power, and workplace safety systems function normally, and all TSMC sites operate. Detailed inspections and impact assessments are ongoing,” the company stated. Industry experts believe there will be no immediate impact on global chip production.
Despite the quick recovery, the incident underscores the vulnerability of TSMC and Taiwan’s semiconductor industry to natural disasters. As the world’s largest producer of advanced chips—supplying major companies such as Apple and Nvidia—any prolonged disruption could severely impact the global supply chain for consumer electronics, automobiles, and renewable energy systems.
Additionally, geopolitical tensions between Taiwan and China pose further risks. China has repeatedly expressed its intent to reunify Taiwan, raising concerns about potential disruptions to the semiconductor supply chain in the event of conflict.
To mitigate these risks, TSMC has expanded its operations globally with a new advanced fabrication facility in Arizona, USA. This plant is currently undergoing testing with clients such as Apple, AMD, and Nvidia. However, the Arizona fab is expected to contribute only about 10% of TSMC’s total output. Furthermore, chip packaging for the Arizona facility is still conducted in Taiwan, highlighting the ongoing reliance on the island’s infrastructure.
