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TSMC Resumes Production After Earthquake, But Full Recovery May Take Time

TSMC, the world’s largest contract chipmaker, says it plans to resume full operations soon. Earlier today, TSMC was forced to evacuate some of its fabs due to a 7.4 magnitude earthquake in Taiwan to ensure the safety of employees.

The Taiwanese giant told Bloomberg that its most critical chipmaking equipment, including EUV machines, were not seriously damaged.

Wen-Yee Lee, a chip reporter, quoted TSMC as saying that the wafer fab equipment recovery rate has exceeded 70%, and the recovery rate of new fabs (such as Fab 18) has exceeded 80%. TSMC said some equipment was damaged, but major equipment was safe.

TSMC is likely to resume chip production overnight, but it will likely take more time to fully recover production operations.

TSMC, a major and well-known Taiwanese company, plays a major role in many modern industries, including technology. The company’s chips are used in a variety of products, including smartphones, laptops, home appliances, and even cars.

TSMC was not the only company forced to suspend operations due to the massive earthquake in Taiwan. Bloomberg says United Microelectronics is in a similar situation.

Chip manufacturing is a very complex process and can take months to complete. Unofficial sources say that some of TSMC’s wafers may have been damaged in today’s earthquake, but TSMC has not yet provided any details. Chips are cut from a relatively large disk called a wafer.

The earthquake in Taiwan this morning, the worst in 25 years, killed nine people and injured more than 1,000. Many analysts are concerned that the temporary suspension of TSMC’s operations will lead to higher chip prices and ultimately higher prices for smartphones, laptops and other products.

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