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Taiwanese semiconductor giant TSMC restarts operations after earthquake, easing concerns of chip supply disruption

  • The world’s largest contract chip manufacturer restarted operations within 10 hours after work was suspended because of a deadly earthquake
  • The firm said there was no damage to certain critical chip-making equipment, including all of its extreme ultraviolet lithography tools

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The logo of Taiwan Semiconductor Manufacturing Co seen at its headquarters inside the Hsinchu Science Park in Taiwan. Photo: Kyodo
Kelly Le
Taiwan Semiconductor Manufacturing Co (TSMC) resumed operations shortly after the island was rocked by a deadly 7.4 magnitude earthquake on Wednesday, easing industry concerns about a potential disruption in the supply of advanced chips.
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The world’s largest independent contract chip manufacturer, which supplies 90 per cent of the world’s most advanced semiconductors to technology giants like Apple and Nvidia, restarted operations within 10 hours after work was suspended because of the worst earthquake to hit Taiwan in 25 years. There were at least nine fatalities and more than 1,000 injured during the earthquake.
TSMC said in a statement to the Taiwan stock exchange late on Wednesday that there was no significant damage to its facilities in Hsinchu Science Park, a 1,400-hectare area where other major Taiwanese chip makers like MediaTek and United Microelectronics Corp also have factories.

Only “a small number of tools were damaged at certain facilities”, TSMC said. The firm added that there was no damage to certain critical chip-making equipment, including all of its extreme ultraviolet lithography tools.

WATCH LIVE: Taiwan earthquake: damage and relief efforts across island

Following a brief suspension of work, TSMC said 70 per cent of its chip-manufacturing equipment had been “recovered” for production at its fabrication facilities within 10 hours of the earthquake. New facilities, such as its Fab 18, achieved a recovery rate of more than 80 per cent.

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Taiwanese media initially reported that TSMC had estimated the impact of earthquake-related disruption to the firm’s second-quarter earnings to reach US$60 million. But the company’s public comments have signalled minimal impact to its operations.

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