Due to the impact of the earthquake off the eastern coast of Taiwan, the factories of major semiconductor manufacturers based in Taiwan such as TSMC are temporarily suspended
🟦 Impact of the Taiwan Earthquake on the Semiconductor Industry
The earthquake off the eastern coast of Taiwan on April 3, 2024 had a significant impact on Taiwan’s semiconductor industry. Many factories were forced to suspend operations, but the damage was minimal, and most factories resumed operations within a few days. However, some advanced process plants may take longer to recover due to equipment damage. DRAM prices are likely to rise in the short term, but the long-term impact is unclear due to weak demand.
🟦 Most factories reopened within a few days
Taiwan is a global semiconductor production hub, with major companies such as TSMC, UMC, and Micron setting up factories in Taiwan. Due to the earthquake off the eastern coast of Taiwan on April 3, the factories of these companies were temporarily suspended. Most factories will resume operations within a few days, and the impact is expected to be minor.
Impact of the earthquake at each company
TSMC
restored more than 70% of its plant equipment within 10 hours of the earthquake. However, some advanced process plants have equipment damage that can take weeks to recover. Repairs and replacements of damaged equipment are underway, and the impact on production capacity is expected to be limited.
UMC damage
was minor and all plants resumed operations within a few days. There is no impact on production capacity.
Micron
is still assessing the impact on production and supply chain operations at its Linkou plant in Taiwan. It is expected to fully recover within a few days, with limited impact on production capacity.
Companies such as PSMC, Winbond, and Vanguard also suffered minor damage.
🟦Summary
The earthquake off the eastern coast of Taiwan on April 3, 2024, forced factories of major Taiwan-based semiconductor manufacturers such as TSMC to suspend their factories. However, the quick response minimized the damage, and within a few days, most of the factories resumed operations. While the impact is expected to be minor, some advanced process plants may take longer to recover due to equipment damage.
It seems that there is no damage at the Naka factory of Renesas Electronics, which was severely damaged during the Great East Japan Earthquake in 2011, so it is a relief.
