Occurrences
Divisions
Performances
Occurrences
Divisions
Performances
TSMC compelled to vacate its factory due to Taiwan earthquake, chip production may experience interruptions, prices skyrocket
The heavy dependence on Taiwan for the production of semiconductors has been a significant worry for industry executives and government authorities for a long period. Consequently, numerous government representatives have been encouraging chip producers to broaden and vary their manufacturing facilities beyond Taiwan.
The prices of mobile phones, computers, and almost all other electronic gadgets are expected to rise in the upcoming months due to the significant 7.4 magnitude earthquake that struck Taiwan earlier today.
Following the most significant earthquake in Taiwan in the last 25 years, both Taiwan Semiconductor Manufacturing Co. (TSMC) and its rival, United Microelectronics Corp. (UMC), have cleared out large portions of their facilities. This move has led to doubts about chip production at the world's top producer of high-tech chips.
TSMC, the main contract chip manufacturer for leading tech companies such as Apple and NVIDIA, had to move their personnel from certain regions. The chip manufacturer is currently assessing the repercussions of the 7.4-magnitude earthquake that occurred off the island's eastern coastline. In the same way, UMC stopped work at some factories and cleared out its Hsinchu and Tainan centers.
Companies from Taiwan, such as TSMC and ASE Technology Holding Co., are the leading players in the worldwide semiconductor industry, providing chips for a range of products including iPhones and cars. It's believed that Taiwan produces around 80-90% of all silicon chips that are used in smartphones and supercomputers powered by artificial intelligence, either as completed Systems on Chips (SoCs), or as silicon wafers.
Taiwan is situated close to a significant geological fault line where two tectonic plates converge. This leaves it susceptible to regular and occasionally very strong earthquakes.
Taiwan often experiences earthquakes, which can affect its factories that are also exposed to frequent minor seismic disturbances. A significant earthquake has the potential to destroy entire sets of meticulously crafted semiconductors.
"TSMC's safety measures are operating as expected. In line with company procedures, specific manufacturing units were cleared to guarantee the safety of our staff," the company declared in a press statement. "At present, we are determining the scope of the impact."
For several years, industry chiefs and government authorities have expressed serious worries about the overdependence on Taiwan for producing semiconductors.
The global scarcity of semiconductors was made worse by the COVID-19 pandemic, revealing the inherent weaknesses in worldwide supply chains for silicon chips. The unprecedented chip shortage impacted various industries globally, with the available chips being sold for three to four times their standard price.
Scalpers have been purchasing NVIDIA's GPUs, which are utilized in gaming and video editing computers, cryptocurrency mining, and currently AI applications. They aim to make swift profits by reselling these GPUs for a price that ranges from 50% to 250% higher than the original cost.
Due to these worries, global government authorities have been encouraging Taiwanese firms, such as TSMC, to spread their production facilities across various regions, considering the possible risks to Taiwan's stability. Taiwan, besides being susceptible to earthquakes and tsunamis, has also had to handle an unpredictable and challenging relationship with China.
Search for us on YouTube
Headline Shows
Associated Articles
The danger of a tsunami has 'mostly subsided' after a strong 7.4-magnitude earthquake shook Taiwan
Earthquake of 7.4 magnitude in Taiwan: Japan, Philippines withdraw tsunami alerts
Are AI companies on the verge of collapse? Industry experts think we're at the height of a bubble, on the brink of popping
'Power-hungry, challenging to collaborate with': The reasons why venture capitalists from Silicon Valley are now steering clear of Sam Altman
The danger of a tsunami has 'mostly subsided' after a strong 7.4-magnitude earthquake shook Taiwan
Earthquake of 7.4 magnitude in Taiwan: Japan, Philippines withdraw tsunami alerts
Are AI companies on the verge of collapse? Industry experts think we're at the height of a bubble, on the brink of popping
'Power-hungry, challenging to collaborate with': The reasons why venture capitalists from Silicon Valley are now steering clear of Sam Altman
Connect with us on YouTube.
Leading Programs
Associated Articles
The threat of a tsunami has significantly reduced after a strong 7.4-magnitude earthquake hit Taiwan.
Following the 7.4 magnitude earthquake in Taiwan, both Japan and the Philippines have withdrawn their tsunami alerts.
Are AI businesses on the brink of collapse? Professionals suggest that we are at the apex of a bubble that's about to pop.
Why are venture capitalists in Silicon Valley shying away from Sam Altman? They find him egotistic and challenging to collaborate with.
After a potent 7.4-magnitude earthquake hit Taiwan, the tsunami threat has mostly diminished.
Post the 7.4 magnitude earthquake in Taiwan, tsunami warnings have been lifted in Japan and the Philippines.
Are we seeing a precarious situation for AI companies? Specialists think we are at the zenith of a bubble that's on the verge of bursting.
Why are Silicon Valley's venture capitalists steering clear of Sam Altman now? They label him as a power-hungry individual who is tough to work with.
Available on YouTube.
All rights retained by Firstpost, Copyright © 2024.
+ There are no comments
Add yours