Taiwan’s biggest earthquake threatens global tech supply chain

The earthquake, with a magnitude of 7.4, hit at 8am local time and resulted in the collapse of over 25 buildings across Taiwan, causing at least nine fatalities and injuring over 800 individuals, with many repercussions yet to be determined.

Taiwan Semiconductor Manufacturing Co (TSMC), the global leader in advanced chip production for clients such as Apple and Nvidia, temporarily ceased operations of some chipmaking equipment and conducted staff evacuations.

Its competitor, United Microelectronics Corp, similarly suspended operations of machinery at some of its plants and evacuated certain areas within its Hsinchu and Tainan locations.

A spokesperson for TSMC told Bloomberg that initial inspections revealed no abnormalities at construction sites, yet the company chose to halt work there for the day. They stated that operations would restart following more thorough inspections and mentioned that TSMC is currently assessing the full extent of the earthquake's effects.

It is estimated that Taiwan is responsible for producing an estimated 80 to 90% of the most advanced chips needed for high-tech applications like smartphones and artificial intelligence.