The magnitude 7.4 earthquake struck fairly close to Taipei, which plays a vital role in the global chip supply chain.
Taiwan’s vital tech manufacturing industry so far appears to have escaped major damage following the 7.4-magnitude earthquake that struck Taiwan on Wednesday morning, triggering landslides and downing buildings.
The earthquake was centered near the coastal town of Hualien, which is about 100 miles from the capital city of Taipei. It was the strongest earthquake to hit Taiwan in 25 years and has resulted in 10 deaths so far. Taiwan’s Central Weather Administration agency said the quake could be felt across the entire island, and there have been hundreds of aftershocks, several registering a magnitude of more than 6.0, following the initial quake. CNN reports that aftershocks as strong as magnitude 7 are expected in the coming days.
However, despite some severe rocking (as captured on numerous webcams) in Taipei, Taiwan’s vital tech industry appears to be relatively unscathed. CNBC reported that Taiwan Semiconductor Manufacturing Company (TSMC) halted production and evacuated employees from the factory lines after the quake initially hit, but TSMC said later that all of its workers were safe and those who were evacuated have started returning to some factory lines.
A TSMC spokesperson told CNBC that its construction sites were normal upon initial inspection (TSMC is expanding its fabrication facilities). The company plans to conduct further inspections and only then will construction resume.
Analysts I contacted also reported that there was minimal disruption. “TSMC and ODMs do not expect a significant impact,” said Vladimir Galabov, senior analyst with supply chain market researcher Omdia. “We’ve all read the news that fabs were evacuated, which is standard protocol. Semi fabs, particularly, are currently not working at 100% capacity, except on the 3/4/5nm nodes, so impact should be fairly limited.”
“All I’ve heard is that there were temporary shutdowns, which is normal. No immediate impact on supply or manufacturing,” said Jim McGregor, principal analyst with Tirias Research.
An Intel spokesperson said: “All our Taiwan employees are safe and accounted for and at this point there is no expected disruption in our operations there.”
So, for now, there are no expected disruptions in the supply chain coming out of Taiwan.
