An earthquake in Taiwan sends shock waves around the world
The Hualien earthquake in Taiwan on April 3 not only raises concerns about the impact on the island’s population and infrastructure, but also about the possible consequences on the global supply chain.
On this occasion, the impact on the chip manufacturing industry was virtually nil, although TSMC and UMC temporarily stopped their production lines to inspect the possible effects of the quake and evacuated some workers from the most affected or vulnerable areas. But because Taiwan is located in an area of great instability, not only tectonically but also geopolitically, it is worth considering
Taiwan is home to up to 90% of the industry’s most advanced sub-eight nanometer chip manufacturing, for which there are virtually no substitutes. More and more industries are looking to develop AI are desperate to obtain Nvidia’s most advanced chips, all of which are manufactured in Taiwan by TSMC. Apple’s most advanced chips are also entirely produced by TSMC in Taiwan, and again, there is no alternative.
Some industries, such as vehicle manufacturing, which uses chips designed many years ago, can access the Chinese market. Not so companies with more advanced needs, such as Tesla, which designs its own chips and manufactures them exclusively with TSMC in Taiwan. To be clear: virtually all those who rely…
