Mobiles phones, PCs and practically all other electronic devices are likely to get more expensive for the next few months because of the massive, 7.4 magnitude earthquake that hit Taiwan earlier today.
In the wake of the largest earthquake to strike Taiwan in a quarter-century, both Taiwan Semiconductor Manufacturing Co. (TSMC) and its competitor, United Microelectronics Corp. (UMC), have evacuated massive sections of their factories, creating uncertainty around chip production at the world’s leading manufacturer of advanced chips.
TSMC, which serves as the primary contract chipmaker for tech giants like Apple and NVIDIA were forced to relocate their staff from specific areas. The chipmaker has stated that it is evaluating the impact of the 7.4-magnitude earthquake off the island’s east coast. Similarly, UMC ceased operations at certain plants and evacuated facilities in its Hsinchu and Tainan hubs.
Because Taiwan is prone to earthquakes, and Taiwanese factories are susceptible to minor seismic activity regularly, a single major tremor is capable of ruining entire batches of precision-made semiconductors.
“TSMC’s safety systems are functioning normally. As per company protocol, certain fabs were evacuated to ensure personnel safety,” stated the company in a press release. “We are currently in the process of assessing the extent of the impact.”
Relying too much on Taiwan for semiconductor manufacturing has raised major concerns for industry leaders and government officials for years now.