TSMC Evacuates Some Factories in Taiwan After Major Earthquake

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest semiconductor manufacturer, evacuated some of its factories and sent workers to safe places after a 7.4-magnitude earthquake struck Taiwan on Thursday.

The earthquake, the largest to hit Taiwan in 25 years, forced companies like TSMC and UMC (TSMC’s local rival) to move their equipment to other locations.

TSMC’s shares fell about 1.5% and UMC’s shares fell less than 1% after the earthquake. TSMC said it evacuated the factories to ensure the safety of its employees.

Taiwan, which is always prone to earthquakes, has become one of the most important centers for the semiconductor industry. According to reliable sources, about 80 to 90% of the advanced chips used in smartphones and artificial intelligence equipment are produced in Taiwan.

In addition to natural disasters, the constant military threat to Taiwan from China has also worried semiconductor industry executives. U.S. government officials have invited Taiwanese companies to build their factories in different geographic locations due to the aforementioned reasons.

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