A powerful earthquake in Taiwan disrupted the operations of TSMC, the world’s leading chipmaker, impacting lines that supply Apple products. Bloomberg reports that the most severe damage occurred at production facilities crucial to fulfilling Apple’s orders.
On the morning of April 3, 2024, a 7.4 magnitude quake struck Taiwan, causing extensive infrastructure damage and interrupting several key TSMC production units. Sources familiar with TSMC’s activities told Bloomberg that the N3 facility sustained serious damage, with beams and columns failing and production coming to a halt. EUV equipment used for processes below 7 nanometers was shut down, and research laboratories suspended work due to structural cracks. Another factory in Hsinchu reported broken pipelines and damaged plates, forcing a stop to production.
Chips at the high end, including the 3nm A17 Pro used in the iPhone 15 Pro and iPhone 15 Pro Max, require continuous operation and a stable vacuum environment for extended periods. As a consequence, chips already in production may suffer damage or degradation even if they were not directly harmed by the quake.
All custom silicon processors in Apple devices are provided by TSMC. This means the earthquake’s impact on TSMC’s facilities raises questions about possible delays in Apple’s supply chain and the timing of product availability.
TSMC acted quickly to evaluate the damage and initiate recovery procedures. Some production lines are expected to resume today, but the full extent of the natural disaster’s effects on Apple remains unclear.
Bloomberg notes that TSMC has long prioritized disaster preparedness, dating back to the major quake in 1999. Since then, the company has implemented stringent measures to reduce earthquake-related risk and accelerate recovery when disruptions occur.
As Apple continues ramping up production of new devices, any significant interruption in the supply of TSMC-made chips could delay launches or constrain product availability.
Earlier discussions suggested that an earthquake in Taiwan could lead to higher electronics prices.