Taiwan's semiconductor fab status post-earthquake
Date: 09/04/2024
Recent earthquake in Taiwan on April 3 has not caused any major disruption except a day work delayed with most of the fabs resuming the production back with in half a day after quake. The local industry analyst firm TrendForce reported its assessments on the semiconductor industry's operational status and damage. Here is what it finds:
Minimal Initial Damage: The earthquake, with a magnitude of 7.2, mainly affected the DRAM and foundry industries in Taiwan. Fortunately, initial inspections revealed minimal damage to equipment and facilities.
Sequential Shutdowns: Manufacturers in affected regions initiated sequential shutdowns for inspections. Despite this, no significant equipment damages were reported.
Restoration Efforts: TrendForce is currently assessing damage to production line fragments and furnace tubes. However, they anticipate manufacturers restoring production capacities swiftly with minimal impact on supply.
Pricing Suspensions: Major players like Micron, Samsung, and SK hynix suspended DRAM pricing temporarily, reflecting a cautious approach amidst uncertainties post-earthquake.
Spot Market Stability: Despite shutdowns and inspections, the spot market for DRAM and NAND Flash memory remained stable, with minimal price fluctuations.
Short-term Price Increase: TrendForce predicts a slight short-term increase in DRAM spot prices due to cautious market behaviors post-earthquake.
Wafer Foundry Resilience: Taiwan's semiconductor factories, equipped with robust seismic mitigation measures, quickly resumed operations after inspections. TSMC's advanced plants maintained over 90% operation within hours post-quake.
Taiwan's semiconductor industry demonstrated resilience in the face of the recent earthquake. Despite initial disruptions, swift restoration efforts and robust infrastructure ensure minimal long-term impact on production and supply. Manufacturers remain vigilant, with temporary pricing suspensions reflecting a cautious market sentiment. Overall, the industry is poised for a quick recovery, maintaining stability in the global semiconductor market.
News Source: TrendForce
