Introduction
In the quiet hours of the night, Taiwan eastern region was anything but calm. Around 2 a.m., Hualien experienced two consecutive earthquake with magnitudes exceeding 6 on the Richter scale within a span of just 10 minutes. The tremors were felt even in TSMC Hsinchu, where seismic activity reached a magnitude 3.
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TSMC Response
Reports from the ground suggest that the earthquakes prompted swift responses from various technological facilities, particularly in the Hsinchu Science Park (Hsinchu Science-based Industrial Park), known as the heart of Taiwan’s technology industry.
Alerts blared, and machines whirred into action as seismic sensors detected the disturbances.
Notably, TSMC (Taiwan Semiconductor Manufacturing Company, stock symbol 2330), a key player in the global semiconductor market, momentarily evacuated personnel as a precautionary measure.
However, there have been no immediate reports of production disruptions or damage to facilities.
Govt. Data:
According to data from the Central Weather Bureau’s Earthquake Monitoring Center, a Richter scale 5.9 earthquake occurred in Shoufeng Township, Hualien County at 22:11 on the 22nd.
The epicenter was located 26.5 kilometers south-southwest of the Hualien County Government, with a shallow depth of only 8.6 kilometers, categorizing it as a shallow-depth earthquake.
The maximum seismic intensity reached level 4 in areas such as Hualien and Nantou, level 3 in Taichung, Yilan, Taitung, Chiayi, Yunlin, Changhua, and Tainan, level 2 in Miaoli, Taoyuan, Hsinchu, New Taipei, and Taipei, and level 1 in Pingtung, Kaohsiung, and Keelung.
The Bureau reported that since the magnitude 7.2 earthquake on April 3, as of 10 p.m. on the 22nd, people have felt a total of 989 earthquakes, with over 48 of them registering at magnitudes of 5 or higher.
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Safety Measures and Preparedness
The rapid mobilization of staff underscores the meticulous safety protocols adopted by Taiwan’s industrial giants, especially in regions prone to seismic activity.
Despite the unsettling tremors, the response mechanisms in place seem to have mitigated potential risks to operations and personnel.
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April 3 Earthquake:
Following the release of its first-quarter financial results on April 18, TSMC issued an additional significant announcement later that evening regarding the repercussions of the earthquake that occurred on April 3.
TSMC’s initial assessment of earthquake-related losses, after factoring in insurance compensations, amounts to approximately NT$3 billion (US$92 million).
These losses are slated to be accounted for in the second quarter.
TSMC highlighted that within a mere 10-hour timeframe post the April 3 earthquake, the recovery rate of fabrication equipment surpassed 70%.
Specifically, the recovery rate for newly constructed fabs, such as Fab 18, exceeded 80%.
Moreover, due to uninterrupted power supply within the fabs, there were no reports of structural damage, including to crucial equipment such as EUV equipment. The seismic event affected only a specific quantity of wafers in production.
TSMC expects that most of the production losses will be recouped in the second quarter, exerting minimal influence on revenues. According to TSMC’s projections, the earthquake’s overall impact is expected to cause a decline in gross margin of approximately 50 basis points during the second quarter.
This decline primarily results from losses related to wafer scrap and material depletion.
Despite these developments, TSMC’s full-year outlook in US dollar terms remains consistent with the outlook provided during the January conference, with revenue growth for the full year expected to range from low to mid-20s.
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Taiwan’s Resilience
The occurrence of earthquakes in Taiwan, situated along the seismically active Pacific Ring of Fire, is not uncommon.
As a nation accustomed to geological instability, Taiwan has invested significantly in earthquake early warning systems and disaster preparedness measures.
These efforts aim to minimize the impact of seismic events on critical infrastructure and ensure the safety of residents and workers.
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Conclusion
The resilience displayed by Taiwan’s technology sector in the face of such natural phenomena is a testament to the nation’s adaptability and innovation.
Even amidst the uncertainty of the night’s tremors, the industry remains steadfast, reflecting the ethos of resilience ingrained in Taiwan’s cultural fabric.
As dawn breaks and the tremors subside, authorities and residents alike will assess any potential damages and continue to monitor the situation closely.
However, this night serves as yet another reminder of the unpredictable forces of nature and the importance of vigilance and preparedness in safeguarding against them.
