A powerful magnitude 7.0 earthquake struck off the coast of Yilan, Taiwan, on December 27, affecting the Hsinchu Science Park—home to leading foundries like TSMC, UMC, and others. The quake, which registered an intensity of 4 in Hsinchu City, caused immediate disruptions, with multiple wafer fabs reporting damage to sensitive production equipment like quartz furnace tubes and boats, leading to widespread scrapping of in-process wafers. Industry estimates place the preliminary financial damage at billions of New Taiwan Dollars.
Following the quake, semiconductor firms launched emergency operations, with engineering and facility staff rushing to assess and repair the damage. Early reports suggest the impact, while significant, may be less severe than a major quake in April 2024, partly due to its deeper epicenter. Companies noted that most facilities are covered by earthquake insurance, and Taiwan's semiconductor industry is known for its highly efficient recovery capabilities, with full production expected to resume within days.
TSMC: Confirmed its safety systems operated normally. While its advanced 2nm, 3nm, and 5nm nodes at southern sites were largely unaffected (intensity 2-3), some older fabs in Hsinchu and Central Taiwan Science Parks required equipment recalibration.
UMC: Reported minimal impact, as its primary 12-inch fabs are in the Tainan Science Park, while its older 8-inch Hsinchu fabs were operating at lower utilization.
Powerchip Semiconductor Manufacturing Corp (PSMC) and Vanguard International Semiconductor (VIS) acknowledged disruptions at their Hsinchu fabs but stated damage was lighter than in April. Both are assessing losses for insurance claims.
ICgoodFind's Insight
While the earthquake caused notable immediate damage and wafer loss, the robust disaster response protocols and insurance coverage of Taiwan's semiconductor titans are expected to limit the long-term supply chain impact. The event underscores the inherent geographical risks and the critical importance of resilience planning in the global chip industry.
