There violent earthquake shock of magnitude 7.4 which struck Taiwan April 3 risks having serious repercussions onglobal industry. The earthquake, in fact, led Tmsc, Taiwan Semiconductor Manufacturing, to stop production in its factories while waiting to evaluate the impact of the earthquake before resuming production. United Microelectronics, a competitor of Tmsc, did the same, effectively leading to the stop companies that produce chips in the country.
And with the two companies at a standstill, production will cease millions and millions of chips which are then exported around the world and which are fundamental for the creation of smartphones, cars and, more generally, digital devices and household appliances.
Chip companies shut down after earthquake
What led Tmsc and United Microelectronics to stop was the fear that the earthquake brought with it. Beyond the 7.4 degrees of magnitude, which are scary just to read and feel certainly sent shivers down your spine, the shock could have caused extensive damage.
Chips, in fact, are highly vulnerable devices and even a small fleeting vibration can cause the destruction of entire batches of semiconductors. Which is why, first of all, those already produced will have to be checked and, subsequently, a decision will be made on what to do.
TSMC sources told Nikkei, the Japanese news agency, that “some wafers have cracked” and that employees will be recalled on holidays to recover lost production, but the large industry is shaking.
Above all, those who fear are companies such as Apple and Nvidia who receive the semiconductors that give life to their devices from Taiwan.
The importance of Taiwan and its precedents
This is not an isolated case, because in the past some blockages have caused extensive damage which is still continuing today. Tmsc has certainly invested a lot over the years to minimize the risks related to earthquakes, but the blocking of factories can occur in various cases.
In recent years, in fact, the production chain has stopped several times. In addition to the period of tension with China, with the ships deployed off the coast of the country which raised fears of an escalation, the most striking case and certainly remembered by everyone is the one linked to the pandemic.
During the years of Covidit stop the factories of semiconductors in Asia has caused a real jam in the production chains of goods in every nation in the world, affecting every tech industry. In fact, from companies that produced electronic devices to the car industry, no one was excluded from the semiconductor crisis which now, with the earthquake that occurred on April 3 in Taiwan, is once again raising fears of a blockade.
Tmsc and United Microelectronics, on their part, have ensured that the suspension will be temporary and all the work that has been lost will be made up on non-working days, but the fear does not go away. Especially because without chips there cannot be many devices in everyday use.
Those produced in Taiwan, specifically, have a fundamental role for the industry because they are truly everywhere.
