Taiwan Semiconductor Manufacturing Co. was forced to evacuate staff from certain areas after the 7.4 earthquake hit the island.
According to Bloomberg, TSMC is the primary chipmaker for Apple Inc. and Nvidia Corp. The company produces the majority of semiconductors that go into electronic devices as small as iPhones to cars.
The outlet noted that the company’s factories are vulnerable to even the slightest vibrations which can ruin an entire batch of semiconductors.
After TSMC shares dipped 1.3 percent in early trading, the company issued a statement which read in part, “TSMC’s safety systems are operating normally. To ensure the safety of personnel, some fabs were evacuated according to company procedure. We are currently confirming the details of the impact.”
Taiwan is the source of approximately 80 to 90 percent of the advanced chip and industry leaders have called out the dangers of the world’s supply being consolidated in one place, especially in an area prone to quakes and a possible military conflict with China.
Bloomberg reported that TSMC has expansion projects in Japan and the US but will take time to become fully operational.
