Taiwan suffered from an earthquake on 6, February with a magnitude of 6.4 that struck the country’s semiconductor giant, TSMC. After the incident, TSMC announced that its factories had been left bruised and that would settle with a reduction in the number of shipments by 1 percent. Now we know that this reduction in shipments will be higher than expected, because the factory 14 (Fab-14) suffered damage for initial assessments.
Taiwan Earthquake Hits TSMC Harder Than Expected
In the official statement from TSMC to its customers, they said that 95 percent of the machinery could return to the functionality within 2 or 3 days after the earthquake. The machines of the Fab-6 and Fab-14B have been completely restored. Despite the disaster, the company is confident to achieve revenue targets from 5.9 to 6.0 billion dollars for Q1-2016. TSMC is the main partner of the major semiconductor companies such as AMD, Apple, NVIDIA and Qualcomm.
Panel maker Innolux indicated that the earthquake did not damage 3.5G and 4G factories, but did affect 5G and 6G factories at STSP, with restoration estimated to take a week. Innolux has shifted partial production from factories at STSP to a factory in northern Taiwan to minimize the impact on shipments, the company said.
AMD recently moved the manufacturing of its next generation graphics cards in hands of Korean giant Samsung, while NVIDIA is building its next family of ” Pascal ” GPUs with TSMC, so after this natural disaster they might face the problem with an initial printing of products, while AMD has guaranteed to start to haunt the stock market this summer.