Little impact on chip factories after Taiwan earthquake

In Tainan, a major hub, TSMC and UMC have begun emergency protocols, including evacuating employees and shutting down equipment. Although no major equipment damage was reported, debris was found in the furnace systems, prompting inspections.

TSMC operates an 8-inch manufacturing plant and two 12-inch fabs in Tainan, producing a range of technologies from mature nodes to advanced 5/4nm and 3nm processes. UMC runs an impressive 12-inch fab in the region, supporting nodes from 90nm to 14nm. According to TrendForcec, operations at these facilities began to resume on the morning of January 21 – and the impact on actual production appears to be within manageable limits.

With mature operations currently in demand at 70-80% utilization due to seasonal factors, production adjustments are flexible. For advanced nodes, TrendForce believes that most chip startups are for stock preparation purposes, enabling quick recovery from a short downtime.

Impact on display manufacturing

Tainan is also home to major display manufacturer Innolux, which operates several factories in the region. Some facilities have reported equipment being shut down, and damage assessments are ongoing. TrendForce warns that this could worsen the already tight supply of TV panels in the first quarter of 2025.

While the earthquake caused minor disruptions, TrendForce concluded that the overall impact on semiconductor and display production is limited and under control.

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