[News] TSMC to Recognize NTD 3 Billion Earthquake Loss

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Following the magnitude 7.2 earthquake in Taiwan on April 3rd, all of TSMC’s fabs resumed normal operations within three days. According to a report from Commercial Times, TSMC expects to recognize earthquake-related losses of approximately NTD 3 billion (roughly USD 92.1 million) in the second quarter after deducting insurance claims.

During its earnings call on April 18th, TSMC President C.C. Wei expressed gratitude for the dedication and hard work of all employees and supplier partners. He also thanked customers for their understanding and support, stating that TSMC would compensate for production losses in the second quarter.

C.C. Wei stated that during this earthquake, the maximum intensity experienced at TSMC’s fabs was level 5. Immediately following the earthquake, TSMC activated safety measures and occupational health systems at the fabs. All personnel were safe, and through everyone’s tireless efforts, plant operations were swiftly restored.

Due to TSMC’s extensive experience and capabilities in earthquake response and disaster prevention, coupled with regular safety drills, the overall equipment recovery rate of TSMC’s fabs exceeded 70% within 10 hours of the earthquake and was fully restored before the end of the third day following the earthquake. There were no power outages or structural damages at TSMC’s fabs, including critical equipment such as extreme ultraviolet (EUV) exposure machines, all of which remained undamaged.

During this earthquake, although TSMC experienced a certain quantity of wafers in production that were affected and had to be scrapped, it is anticipated that most of the production losses will be recovered in the second quarter, resulting in minimal impact on second-quarter revenues.

TSMC expects the overall impact of the earthquake to decrease its second-quarter gross margin by approximately 50 basis points, primarily due to losses related to wafer scrap and material consumption.

Read more

• [News] TSMC Q1 2024 Earnings Call Highlighted Two Major Revisions
• [News] Taiwan Hit by 7.2 Magnitude Earthquake: TSMC and Other Semiconductor, Panel Supply Chain Updates

(Photo credit: TSMC)