It is one of the most advanced companies in the world in terms of semiconductor production. However, TSMC was also faced with the earthquake that shook Taiwan. A shock that also shook the tech industry.
In Taiwan, it was not just the ground that was affected by tremors. The tech world also shook for a brief moment. For good reason: the island located to the east of China also happens to be at a major IT crossroads. It is in this small territory that the TSMC company is based, one of the major flagships of the semiconductor sector.
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However, the Asian press reports that the earthquake caused some disruptions in the group's activity. According to the Japanese daily Nikkei, citing a TSMC press release, some factories had to be evacuated. There were no deaths or injuries, but the company is now assessing the potential impact of the earthquake.
It is still too early to determine the consequences of the disaster on the activities of Taiwan Semiconductor Manufacturing Company. On the markets, the group's share price briefly suffered the blow, with a drop of 10% compared to its peak price, in the hours preceding the seismic event.
Among the main companies that produce these electronic components, which are found in a very wide variety of products, starting with smartphones, TSMC is in the top three, with Samsung (South Korea) and Intel (United States). ). Its “forges” are at the cutting edge, with the capacity to produce chips with extremely fine engraving.
TSMC, a company at the forefront of an essential sector for tech
TSMC has been able to evolve at the threshold of 3 nanometers (nm) since 2022 — a nanometer is equivalent to a billionth of a meter (by comparison, a hair is 50,000 times thicker). The next horizon for the Taiwanese will be to go down a notch below, with the 2nm manufacturing processmentioned for 2024.
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Miniaturization in the field of semiconductors offers the advantage of increasing the density of transistors very quickly on a surface whose dimensions barely change. Thus, the number of transistors in a processor has increased from a few (tens) of thousands in the early 1970s to tens of billions today.
However, Taiwan Semiconductor Manufacturing Company has deployed the vast majority of its installations in… Taiwan. On his site, the company lists thirteen factories on the island, as well as its research and development center and its headquarters. Only three factories are located elsewhere: two factories in China and one in the United States.
As recalled by Financial Times in October 2022, TSMC placed its factories on the west coast of the country, on the other side of the island where the earthquake struck. A stroke of luck here (this, however, poses other problems in the event of a conflict with China ). It is also on this facade that the Taiwanese population is concentrated.
TSMC is an essential player today in the production of semiconductors. The group is at the origin of 37% of microprocessors globally, pointed out Forbes in February 2023. The firm's clientele includes names like Apple, Nvidia, Qualcomm, AMD, ARM, Broadcom, MediaTek and Marvell.
A collapse in manufacturing capacity on the island would undoubtedly have dire consequences for the tech industry, with significant delays in the schedules of various companies that have no alternatives. A 2019 study showed that 92% of chips less than 10 nm came from Taiwan.
The risk weighing on TSMC also exists for other tech companies located in Taiwan – such as United Microelectronics, Innolux or AU Optronics. The first makes chips, the other two make screens. Evacuations also affected industrialists, reports Nikkei. Foxconn and Winbond are also in the country.
Interruption for at least one day
For the moment, the possible damage from the earthquake on TSMC's activities is uncertain. The company suspended production for at least a day while it carried out inspections. This involves checking the condition of the manufacturing lines, but also of the water and electricity supply network.
The dangers are multiple: fires, structural damage to buildings, misalignment of assembly tools, risk of electrocution, equipment breakage, chemical leaks… not to mention human victims, or bodily injuries – however not reported to this stage for TSMC staff.
TSMC, like other companies, however, is aware that the country is in a turbulent seismic region. The company also highlights the various measures taken since 1999 (date of the last very serious earthquake which hit the island) to secure its industrial sites, with measures “ exceeding legal requirements. »
“ The company conducted a thorough survey of all buildings and facilities, implemented shock absorbers to improve building structures, and adopted new anti-seismic technologies and methodologies to assess and control risks “, can we read on the official websitewith a list of measures.
It remains to be seen whether this strategy to resist seismic hazards was sufficient this time or whether new measures will have to be taken. The opening of new production centers is also a solution, both to meet demand, but also to establish itself in safer areas. Sites in Germany And in Arizona are precisely planned.
This should continue. In an article dated November 2022, the journal The Great Continent noted TSMC's intention to invest $40 to $44 billion over five years, particularly in Europe. This also shows the capabilities of a group which has brought the island of Taiwan from 0% market share in 1990 to 22% in 2020 – the first.