TSMC Halts Operations, Evacuates After Strong Taiwan Earthquake

Taiwan Semiconductor Manufacturing Co (TSMC), a key player in the global supply of advanced semiconductor chips, initiated evacuation procedures and temporarily halted operations in some areas as a precautionary measure following a significant earthquake off the east coast of Taiwan. The quake, which registered a magnitude of 7.4, has prompted tsunami warnings in the region. The company has since reported that all its employees are safe, and some workers have resumed activities on certain production lines.

The incident, which is considered Taiwan's strongest earthquake in 25 years, resulted in the collapse of buildings and the issuance of tsunami advisories by neighboring countries, including Japan and the Philippines. TSMC is conducting assessments to understand the full impact of the earthquake on its facilities and production capacity. Given the critical role TSMC plays in the semiconductor industry, any prolonged disruption could have wider implications for tech companies that rely on its chips for products ranging from smartphones to AI technologies.

Financial markets responded to the event with shares of TSMC declining by 1%, contributing to a 0.9% drop in the broader Taiwan Weighted Index. TSMC is the largest company listed on the index, boasting a market capitalization of $639.65 billion. Despite the temporary suspension of some of its operations, the earthquake underscores the importance of supply chain diversification in the semiconductor industry to mitigate risks associated with natural disasters.