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Taiwan Earthquake: The Taiwan earthquake has raised concerns about semiconductor chip shortages in certain areas, which could result in major disruptions in the supply chain. On Wednesday, the most powerful earthquake of 7.4 magnitude in the last 25 years occurred in Taiwan. The earthquake killed 10 people and injured about 1,070 people, while about 700 people are missing or stranded. This earthquake may affect the supply of technical components like display panels and semiconductor (chips) of smartphones. However, chip manufacturing companies have reportedly said that they have resumed production in their factories.
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Production work will resume
Taiwan Semiconductor Manufacturing Co (TSMC) – the world’s largest contract chip maker – said more than 70 percent of its chip manufacturing equipment has resumed production after production was halted due to the earthquake. The company says that some parts of the factory were immediately evacuated, but employees later returned to their workstations.
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Equipment of some factories damaged during earthquake
TSMC also reported that equipment at some factories was damaged during the earthquake, disrupting production lines, although a full assessment is being conducted and efforts are being made to bring the factories back to full capacity. TSMC supplies chips to companies like Apple and Nvidia.
What did Nvidia say on the supply chain?
Nvidia says it has consulted with its manufacturing partners and does not expect supply chain disruptions following the Taiwan earthquake.
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What is going to be affected?
According to research firm TrendForce, the semiconductor chip shortage could impact shipments of television panels as manufacturers are already working at almost full capacity to meet demand globally. Due to this, the prices of TV panels may increase in April.
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