Chip makers in Taiwan pause work due to earthquake
A strong earthquake in Taiwan caused the suspension of production facilities of chip manufacturers TSMC and UMC. The consequences of the disaster could affect global chip production and lead to higher prices for electronics.

A strong earthquake in Taiwan led to a temporary suspension of operations at major chip manufacturers. This could trigger a shortage of chips and affect the cost of electronics.
Earthquake Details
On Wednesday, around 7:58 am local time, eastern Taiwan was hit by a magnitude 7.4 earthquake. The epicenter of this event was located just 18 km from the city of Hualien. It was the most powerful earthquake to hit Taiwan since 1999, according to the US Geological Survey.
Suspension of chip manufacturers' activities
Bloomberg reports that TSMC, one of the world's leading chipmakers, has evacuated some of its manufacturing facilities as a precaution. However, it is worth noting that TSMC's main production facilities are located in western Taiwan, while the epicenter of the earthquake was on the east coast. Asia Tech Wire reports that production will be suspended for 6 hours.
However, TSMC is not the only company in Taiwan engaged in the production of key components. Bloomberg also reports that UMC has evacuated its production facilities on the western side of the island. This indicates the likelihood that the company was not damaged by the earthquake.
Impact on the industry
The effects of an earthquake could seriously impact chip production, which in turn could lead to shortages or higher prices for these critical components. All of this could cause prices to increase on everything from laptops to TVs.
In addition, earthquakes in Taiwan have repeatedly caused disruptions in the global electronics supply chain. For example, after the 1999 earthquake, prices for DRAM modules increased by more than 25%, and shortages continued for several months.
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