Taiwan earthquake causes estimated $62 million in damage and disruption to TSMC – UV equipment reported safe and sound: report

Key extreme ultraviolet (EUV) lithography equipment at TSMC is “safe and sound,” DigiTimes reports, with production returning to 70 or 80% of capacity on the same day of the devastating April 3 earthquake. However, the earthquake and its aftershocks did not leave the production facilities unscathed: according to the new report, the seismic outage and the damages incurred will cost TSMC about $62 million. While the UV machines are undamaged, the plant's beams, columns, walls and pipelines were damaged during the earthquake(s) according to DigiTimes' unnamed sources. Without official confirmation we should take the details with a pinch of salt.

TSMC reportedly rebounded very quickly after a series of violent earthquakes and aftershocks in Taiwan on Wednesday morning. Since then we have been trying to ascertain the extent of the damage to the island's vital semiconductor industry. Companies like TSMC are notoriously secretive about their internal goings-on, so we only have glimpses from a handful of insiders willing to spill their secrets.

TSMC's N3 plant in Tainan and another plant in Hsinchu were affected by the following issues, say sources familiar with the company's operations:

Extensive damaged chips (Hsinchu) Broken beams (N3) Broken columns (N3) R&D laboratory walls cracked (N3) Broken pipelines (Hsinchu)

Notwithstanding the above, we reiterate that the most important machines, including EUV machines, are said to be intact.

The precautions taken when building modern semiconductor factories seem to have mostly paid off. TSMC and other industries that were severely affected by the earthquake (earthquake) in 1999 readily adopted earthquake management measures. Thus all the buildings in the center of industry are built to withstand the earthquakes that are so common in Taiwan. Furthermore, the most expensive and sensitive machines are mounted in a special way designed to further insulate them from shock, shock and vibration. Tom's Hardware saw these types of extra device precautions during our wonderful visit to Micron Taichung.

While advanced modern factories may have survived earthquakes with relatively little serious damage, it is important to remember that there are many businesses and supporting processes that could experience more serious disruptions. Factories require constant, reliable flows of energy as well as refined air, water and chemicals to keep running smoothly.

TSMC has neither confirmed nor denied the specific details regarding the damage to its plant, shown above, so please add a pinch of salt. We hope that more clarity will come through official investor statements and communications in due course.

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