Market Insights - Taiwan Earthquake 2 (1) - Flipbook - Page 2
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April 2024 Taiwan Earthquake
On April 3, 2024, a powerful magnitude 7.4 earthquake struck Taiwan, resulting in at least 9 fatalities and over
1,000 injuries, marking the strongest quake in the area since 1999. The seismic event, centered southsouthwest of Hualien City, triggered numerous aftershocks and a small tsunami, causing widespread damage
including collapsed buildings, landslides, and disruptions to infrastructure. Despite the swift response of
authorities and relief efforts, challenges persist, such as rescuing trapped individuals, restoring utilities, and
repairing damaged infrastructure. International solidarity has been evident, despite tensions between Taiwan
and China regarding
relief assistance.
However, the impact on local semiconductor players is anticipated to be minimal, primarily due to the rapid
recovery efforts of Taiwan Semiconductor Manufacturing Co (TSMC), the leading producer of advanced chips
for companies like Apple Inc and Nvidia Corp. TSMC resumed production within 24 hours of the quake, with a
significant portion of its machinery back online shortly after. While some wafer fab factories in the region
were affected, semiconductor players are not expected to face immediate disruptions due to available
inventory and TSMC's robust earthquake-resistant infrastructure.
Impacts of Earthquake in Taiwan last April 2024 to Semiconductor Industry
The 7.2-magnitude earthquake in Taiwan's eastern coast is unlikely to heavily impact the global
semiconductor supply chain immediately according to analysts. Its minimal economic repercussions stem
from the quake's location, primarily a tourist area rather than a semiconductor hub. Most fabs faced only
short closures, indicating minimal production delays unless equipment damage surfaces.
Despite Taiwan's pivotal role in chip manufacturing, particularly with Taiwan Semiconductor Manufacturing Co
(TSMC), key players like Pankaj Mohindroo of ICEA foresee minimal disruptions in electronics supply chains.
However, analysts anticipate brief spikes in electronic device prices due to operational disturbances. The
earthquake has sparked discussions on reducing dependence on Taiwan, emphasizing the need for diversified
semiconductor supply chains globally. Awaiting updates from Micron as they continue to review their facilities
and supply chains.
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