The powerful earthquake in Taiwan damaged the infrastructure of TSMC, the world’s largest chip manufacturer. Some of the most serious damage occurred to production lines used to fill Apple’s orders. In this respect reports Bloomberg publication.
A 7.4 magnitude earthquake occurred in Taiwan on the morning of April 3, 2024, causing significant infrastructure damage and disruption of many key TSMC production units. Bloomberg sources familiar with TSMC’s activities reported that the N3 factory in particular suffered serious damage: beams and columns broke, leading to a complete stop of production. EUV machines needed for production processes below 7 nm were stopped and work in research laboratories was suspended due to cracks in the walls. Another factory in Hsinchu reported that pipelines broke and plates suffered serious damage, requiring production to be stopped.
Some high-end TSMC chips, like the 3nm A17 Pro in the iPhone 15 Pro and iPhone 15 Pro Max, require 24/7 operation and a constant vacuum environment for weeks. As a result, some high-performance chips already in production are likely to be damaged, even if they are not directly damaged.
All custom silicon processors in Apple devices are provided by TSMC. Therefore, the earthquake’s impact on TSMC’s facilities raised concerns about possible delays in the Apple product supply chain.
The chipmaker took immediate action to assess the damage and begin recovery procedures. Some production lines are expected to restart today, but this still does not fully clarify the expected consequences of the natural disaster for Apple.
Bloomberg writes that TSMC has historically placed a strong emphasis on disaster preparedness, especially since the major earthquake in 1999. Since then, the company has implemented stringent measures aimed at reducing earthquake-related risks.
As Apple is in the process of ramping up production of its new products, significant disruptions in the supply of chips produced by TSMC could potentially delay product launches or limit their availability.
Previously AppearedIt was stated that an earthquake in Taiwan could cause electronics prices to increase.