TSMC Hit by Magnitude 7.2 Earthquake: $60M Impact, Guotai Research Report

M+ Global Updates 03/04/2024 10:06

A magnitude 7.2 earthquake struck the Taiwan region today.

According to research from Guotai's Securities Research Department, TSMC's ($Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR TSM$) facilities, designed to withstand up to a magnitude 7 quake, reported some damaged quartz tubes and wafers. Production was halted for equipment checks, aiming to prevent misalignment.

The estimated impact on TSMC is less than six hours of work, with an expected financial hit of about US$60 million for Q2, and a profit margin effect of less than 0.5%.

Micron ($Micron Technology, Inc. MU$) reportedly said it was evaluating operations in the region after the earthquake.

Read more:

  1. Micron Technology Assessing Impact of April 3 Earthquake
  2. April 3 Earthquake Could Impact GPU Prices: Analysts

As of 12:15 GMT+8, TSMC's stocks listed on the Taiwan Stock Exchange are trading lower by 0.89%, compared to a 0.17% after-hours dip in the US market.