Taiwan Hit By Devastating 70 Earthquake Amid Chip Industry Rescue Efforts

Yesterday, the eastern coast of Taiwan was hit with the strongest earthquake in 27 years, measuring 7.0 on the country’s scale and 6.6 to 6.7 according to the USGS standard. Reports indicate that TSMC’s chipmaking factories were largely unharmed due to the company’s robust earthquake protection measures.

The epicenter of the quake was located approximately 33 kilometers east of Yilan, with a focal depth of 72.8 kilometers deep. This depth prevented the quake from causing significant damage when it struck the shores. While this magnitude earthquake is certainly severe, similar strength quakes have occurred in Taiwan since 1999.

The Hsinchu area, where most of TSMC’s semiconductor facilities are located, experienced minor vibrations measuring a magnitude 4. This region is known for its high concentration of chipmaking facilities and has seen the company take extensive measures to mitigate earthquake effects.

TSMC reported that some earthquake alert systems were triggered, leading to evacuation of certain facilities in accordance with safety protocols. Following a thorough safety inspection, work was briefly resumed, with no apparent damage noted. This demonstrates the effectiveness of TSMC’s earthquake protection measures, which have been designed to safeguard its facilities against seismic activity.

Taiwan is still prone to earthquakes due to its location in a seismically active region. The 1999 earthquake, for example, had a magnitude of 6.7 and caused widespread damage throughout the country. TSMC learned valuable lessons from this event and has since invested heavily in upgrading its safety systems.

The company’s commitment to earthquake mitigation can be seen in various aspects of its facility design and operations. Clean rooms, where critical chip production takes place, are isolated from external vibrations using double-shell structures. Viscous dampers and hydraulic pistons are also installed throughout facilities to absorb vibrations and protect buildings from side-to-side damage.

Floating piles have been used to absorb vibrations and provide additional protection against earthquake-related damage. These measures demonstrate TSMC’s proactive approach to ensuring the safety of its operations. In the event of an earthquake, emergency power systems are in place to prevent disruptions to critical functions. This is particularly important for companies like TSMC, which relies heavily on complex equipment that requires constant power to operate.

The company’s own earthquake warning system provides additional assurance, allowing personnel to take necessary precautions before the quake strikes. The effectiveness of these measures was demonstrated during a 2024 earthquake with a magnitude of 6.5, where TSMC was able to restore 70% of its equipment within 10 hours, including 80% of its newer facilities.

The financial cost of the earthquake was relatively modest at NT$3 billion (approximately $95 million), but losing production from a company like TSMC would have far-reaching consequences for the global electronics industry. Investing in earthquake mitigation measures is clear, and TSMC’s proactive approach to safety has paid off.

TSMC’s commitment to earthquake protection has ensured the continued production of critical components for the global electronics industry. The company’s robust safety systems have protected its facilities against seismic activity, demonstrating a proactive approach to ensuring the safety of its operations.