Earthquake Impacts Semiconductor Manufacturers in Taiwan
04-04-2024 | By Fusion Worldwide
On April 3, 2024, a 7.2-magnitude earthquake struck eastern Taiwan before 8:00 a.m. local time. This was the strongest earthquake to hit Taiwan in 25 years, leading to evacuations of numerous buildings that were in danger of collapsing.
Taiwan is central in end wafer production and backend assembly and testing processes, producing over 60% of the world’s semiconductors and 90% of advanced chips. As a key stakeholder in global semiconductor production, this event will impact the electronic component supply chain, but the extent is still being assessed. Manufacturer’s foremost focus is confirming the safety of their personnel. In the short term, facilities with minimal damage that are deemed safe are expected to resume operations relatively quickly. However, a looming concern is the disruption to shipping and supply chain logistics, as this could extend lead times.
Immediate Impact on Semiconductor Manufacturers
Manufacturers in the memory supply chain have taken immediate and proactive measures to address the disruption to manufacturing. Since this occurred at the start of the quarter, pricing for components was either in negotiation or recently updated. Many manufacturers have consequently paused their quotes while shipments are on hold. NAND supply is reportedly unaffected, but DRAM prices were already rising. DRAM spot prices are consequently expected to increase in the near future.
Qualcomm and Western Digital appear unaffected at this time. While Renesas has not made any announcements about the effect on its facilities, most of the company’s wafers come from Taiwan, so there may be a long-term impact.
The table below provides details on the impact on manufacturers with facilities in the area. This information will be updated as soon as additional market intelligence is available.
Fusion Worldwide’s global team is committed to informing our customers of the latest market developments as they unfold. The weather event also triggered tsunami advisories for Japan and the Philippines.
We will continue to monitor the situation in Taiwan, Japan, and the Philippines.
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