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.

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(Photo credit: TSMC)

According to TechNews, TSMC announced its latest updates on the evening of the 5th, stating that equipment within its Taiwan wafer fabs has largely recovered. The company’s full-year performance outlook, denominated in USD, is expected to remain consistent with the forecast provided during the January earnings call. Annual revenue is projected to grow in the low-to-mid twenties percentage range.

TSMC noted its robust experience and capabilities in earthquake response and disaster prevention, regularly conducting safety drills to ensure preparedness. Within just 10 hours of the earthquake on April 3rd, equipment recovery rates in the wafer fabs exceeded 70%, with newly constructed fabs like Fab 18 surpassing 80% recovery.

As of the 5th, except for certain production lines in areas with greater seismic impact requiring longer adjustment and calibration times to restore automated production, thanks to the concerted efforts of TSMC colleagues and supplier partners, equipment within Taiwan’s wafer fabs has largely recovered.

TSMC emphasized its comprehensive assessment of the earthquake’s impact and continues to maintain close communication with customers, providing timely updates on relevant impacts.

(Photo credit: TSMC)

Taiwan experienced a magnitude 7.2 earthquake on the 3rd, prompting round-the-clock repair efforts during the holiday by semiconductor fabs, aiming to restore equipment operations. According to reports from TechNews, the latest progress of various fabs and science parks across different locations is as follows.

TSMC

TSMC stated that the maximum intensity of the earthquake on the 3rd in science parks such as Hsinchu, Longtan, and Zhunan was magnitude 5, while in Central Taiwan and Southern Taiwan science parks, it was magnitude 4. The recovery rate of semiconductor fab equipment has exceeded 80%, with newly built fabs (such as Fab 18 responsible for producing 3 and 5 nanometers wafers) expected to fully recover by the evening of the 4th..

While some equipment in certain areas suffered damage, affecting production lines, major equipment including all EUV machines remained undamaged. In areas with higher seismic intensity, longer time is expected for adjusting and calibrating to restore automated production.

It is believed that this may refer to the advanced packaging stronghold in Longtan, where production process equipment needs reconfiguration due to earthquake evacuation, unstable or disrupted network signals requiring parameter reset, as well as seismic impacts on cleanroom spaces, damaged pipelines, and machinery relocation, all requiring extensive scheduling for repair.

UMC

A spokesperson for UMC indicated that the impact of the strong quake on 12-inch Fab in Southern Taiwan was relatively light, while 8-inch Fab in Hsinchu was more severely affected. The company’s machinery and pipelines remained undamaged, with only instances of machinery displacement, some quartz tube damage, sprinkler head damage, and partial office ceiling damage.

According to market sources cited in the same report, UMC is actively reallocating manpower to reposition machinery in 8-inch Fab, cleaning damaged wafers, and replacing quartz tubes, expecting a recovery time of two to three days, or even a week.

VIS

VIS stated that as of noon on the 4th, about 80% of affected machinery had returned to normal, and production operations would gradually resume. The company promptly informed affected customers upon the earthquake’s occurrence, maintaining close communication and providing detailed information individually.

Hsinchu Science Park Administration

Most major factories including semiconductor and panel manufacturing plants completed equipment recovery from the quake on the 3rd. Although there was some impact on production lines, effective measures were taken by factories such as seismic design for buildings and machinery, personnel evacuation, and preventive machinery shutdowns, resulting in minimal impact on factory operations.

Currently, factories are operating normally, with a few undergoing machine calibration for full recovery in the short term. Manufacturers’ machinery is gradually returning to operation, personnel have resumed their positions, and major wafer manufacturing plants have sufficient materials and are smoothly recovering operations.

Central Taiwan Science Park Administration

In parts of the Central Taiwan Science Park, which mainly focuses on optoelectronics, semiconductors, and precision machinery industries, manufacturers have gradually resumed operations after machinery shutdowns. Among them, over 90% of high-precision machinery in semiconductor fabs have resumed operation, with only some machines undergoing calibration, all expected to complete and operate normally by the end of the 4th.

Southern Taiwan Science Park Administration

As of noon on the 4th, major factories including TSMC, UMC, Innolux and Corning Taiwan in the area have all resumed normal operations. Continuous monitoring of aftershocks and manufacturer dynamics will be maintained, with necessary assistance provided as needed.

(Photo credit: TSMC)

On the morning of the 3rd April, a Richter scale 7.2 earthquake occurred, shaking the entire Taiwan. Semiconductor wafer foundries were also disrupted, and relevant manufacturers have carried out emergency evacuations according to SOP.

According to Money DJ, in response to the earthquake impact, TSMC is currently confirming detailed situations, while UMC has reported partial shutdowns of equipment and is making efforts to resume operations. As for PSMC, related evaluation is underway. The industry believes that the impact on the operations of related companies should be limited.

TSMC stated that, to ensure personnel safety, relevant preventive measures have been initiated according to internal company procedures. Some personnel in certain factory areas have been evacuated, and all personnel are currently safe and gradually returning to their workstations. Detailed situations are yet to be confirmed. Preliminary inspections of factory construction sites have shown normal conditions. For safety considerations, the company has decided to suspend work at construction sites across Taiwan today, and will resume after inspection.

The industry indicates that wafer fab buildings have quite high seismic resistance coefficients, capable of withstanding earthquakes of magnitude 7. However, typically occurring earthquakes of magnitude 3 to 4 may trigger machinery to activate defense mechanisms and auto shutdown. Whether normal operations will be resumed directly after restart, or if other damages occur, will require detailed inspections. Additionally, issues like wafers produced on the production line are partially damaged and ruptured quartz tubes and pipelines will require at least 1 to 2 days for further checking.

(Photo credit: CWA)

Taiwan experienced consecutive earthquakes measuring 7.2 and 6.5 on the Richter scale this morning. According to the Hsinchu Science Park Bureau, foundries such as TSMC and UMC, along with panel manufacturer Innolux in Zhunan, have partially shut down operations as a preventative measure. Additionally, IC testing house King Yuan Electronics and Polyimide Film manufacturer Taimide Tech have evacuated all staff from their Gongluo plant.

An earthquake with a magnitude of 7.2 on the Richter scale occurred at 7:58 AM Taiwan time on the 3rd, with the epicenter located 25 kilometers south-southeast of Hualien.

The regions densely populated with semiconductor and panel factories, Taichung City and Hsinchu County, experienced a maximum seismic intensity of level 5, while Hsinchu City and Tainan City reached a maximum seismic intensity of level 4.

The Hsinchu Science Park Bureau reported that TSMC and UMC in Zhunan have partially shut down for precaution, Innolux Corporation in Zhunan also partially ceased operations, while all employees at King Yuan Electronics and Taimide Tech have been evacuated. Display maker AUO, as well as semiconductor supply chain companies Macronix, PSMC and UMC in Hsinchu Science Park are operating normally.

The bureau also stated that electricity supply in various parks within Hsinchu Science Park is normal. However, there are anomalies in the water supply at the  Biomedical Science Park and Tongluo Science Park, which are currently under investigation; all other parks and construction sites within Hsinchu Science Park are operating as usual.

In another statement by the Southern Taiwan Science Park Bureau, Innolux’s Plant B, TSMC’s Fab 18, and Hannstar in the Southern Taiwan Science Park recorded a seismic intensity of level 4, while Innolux’s Plant F in Kaohsiung measured a seismic intensity of level 3. Companies within the area reported no impact.

For further updates on the aftermath and damage assessment, please follow TrendForce News closely.

(Photo credit: USGS)