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[News] TSMC Reportedly Expects Fab 18 Recovery by Jan. 23, Fab 14 Timeline Uncertain After 6.4 Earthquake
After the 6.4 earthquake on January 21, Taiwanese foundry giant TSMC reportedly managed to restore operations and largely resume normal production by January 23, according to the Commercial Times.
Meanwhile, another report from Liberty Times highlights that while TSMC’s Fab 18, specializing in advanced 3nm and 5nm nodes, was fully operational by January 23, the recovery timeline for Fab 14, which focuses on legacy nodes, remains uncertain.
The Liberty Times report, citing supply chain sources, discloses that Fab 18 is a newly built facility with a high seismic resistance rating. However, the earthquake might still cause an estimated 30-40% impact on equipment, with over 25,000 to 30,000 wafers reportedly damaged.
On the other hand, TSMC’s Fab 14 might not be as fortunate, as it is an older facility producing mature nodes. According to Liberty Times, supply chain sources estimate that around half of the equipment in the fab was affected, with over 30,000 wafers from Fab 14A and 14B rendered unusable.
The Commercial Times suggests that in the 7.1 magnitude earthquake in April 2024, TSMC reported earthquake-related losses of only NT$3 billion (USD 91.6 million), which affected its Q2 gross margin by approximately 0.5 percentage points. In comparison, the financial impact of this recent earthquake is expected to be manageable, the report adds.
TrendForce notes that TSMC operates an 8-inch fab and two 12-inch fabs in Tainan, producing a wide range of technologies from mature nodes to advanced 5/4nm and 3nm processes.
According to TrendForce, while the Tainan fabs produce a diverse range of products, the overall utilization rate for mature processes is currently at 70–80%, reflecting the seasonal lull in component demand. This provides significant flexibility for production adjustments. For advanced nodes, TrendForce believes most current wafer starts are for inventory preparation, and the short downtime or minor debris impact can be easily mitigated. As a result, no significant disruptions are anticipated.
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(Photo credit: TSMC)
