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TSMC’s $150M Chip-making Tools Survive Earthquake, Ensuring Apple Avoids Chip Shortage

In a recent unfortunate event, Taiwan experienced its strongest earthquake in 25 years on April 3, resulting in the loss of 9 lives and leaving 50 individuals missing. The earthquake also had an impact on businesses in the area, including the world-renowned contract chip foundry TSMC.

Despite being located on the opposite side of the island from the epicenter of the earthquake, TSMC had to evacuate its workers as a safety precaution. This raised concerns about potential chip supply shortages for major customers like Apple, MediaTek, AMD, and Qualcomm.

However, TSMC quickly took action to address the situation. Within hours of the earthquake, the company confirmed that its facilities were safe and allowed workers to return to their duties. By Thursday, TSMC reported that over 80% of its fabrication tools had been recovered.

Although some tools at certain facilities were damaged during the earthquake, crucial chip-making equipment like extreme ultraviolet lithography tools remained unaffected. These specialized tools are essential for TSMC’s operations and are supplied by ASML Holding from the Netherlands at a significant cost of over $150 million.

Despite facing challenges due to the earthquake, TSMC continues to prioritize safety and efficiency in its operations. The company’s swift response and commitment to restoring its facilities demonstrate resilience and dedication in overcoming adversity.

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