TSMC chipmaking factories rocked by magnitude 7.0 earthquake that was the strongest in 27 years, but facilities escaped unharmed — company's earthquake protection measures pay off

Yesterday, the ground shook off the coast of Taiwan, slamming the country with the strongest earthquake in 27 years. The seismic wave registered 7.0 on Taiwan's scale, or 6.6 to 6.7 according to the USGS standard. Thankfully, according to reports, TSMC's factories are all intact, saving the world from yet another spike in chip prices.

The epicenter was located on the seabed in the eastern part of the country, approximately 33 km (20.5 mi) east of Yilan. The focal depth was 72.8 km deep (45 mi), deep enough for the quake not to cause too much damage when it hit the shores. Even still, it's the third earthquake of magnitude 7 or higher to hit Taiwan since 1999.

In the Hsinchu area, where most semiconductor facilities are located, the vibrations were only magnitude 4. TSMC reported that some earthquake alert systems were triggered and that some facilities were evacuated in accordance with safety protocols. Following a safety inspection, work was briefly resumed, with no apparent damage noted.

Even in the rest of the country, there was only minor damage. Taiwan's High Speed Rail temporarily stopped six trains in their tracks for a while, and the vast majority of damage reports pertained only to elevators, gas and water leaks, and minor damage to some buildings.

The fact that TSMC was, for all purposes, unaffected by the quake comes down to the company's continued investment in earthquake mitigation measures. The damage from the 1999 earthquake taught harsh lessons, and TSMC learned them all, as the company's safety systems exceed government standards.

The clean rooms are isolated from external vibrations with double-shell structures, and there are viscous dampers and hydraulic pistons installed aplenty. Floating piles absorb vibrations and protect buildings from side-to-side damage, too. Emergency power systems are widespread, as the 1999 earthquake demonstrated that fluctuating power delivery can be as financially damaging as the vibration itself. For good measure, TSMC has its own earthquake warning system.

Even in 2024, when the "0403 Earthquake" hit, TSMC had 70% of its equipment back online in 10 hours, including 80% of its newest fabs, and lost no critical tools, including the EUIV system. Even that stronger event cost the company the comparably modest sum of NT$3 billion, or around $95 million. Losing TSMC's production would be a worldwide catastrophe, so it's good to see the safety investments paying off.

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