On February 6th an earthquake of a magnitude of 6.4 shook Taiwan, a country that is home to one of the world’s largest semiconductor companies called Taiwan Semiconductor Manufacturing Company aka TSMC. Initial reports and assessments made by the semiconductor foundry revealed a limited impact, which would cause a reduction in the total shipments made by the company by less than 1%. However Digitimes now reports the damage is worse than originally assessed, and it may result in a reduction of more than 1% of the total shipments made by the company.
“TSMC originally estimated that more than 95% of foundry machines could be restored to normal conditions in 2-3 days following the earthquake. Machines at Fab 6 and Fab 14B have already been fully restored,” the company said.
Despite this loss the company is confident and hopes to achieve its fiscal year targets which number around US$5.9-6.0 billion for the first quarter of 2016. TSMC is a major partner of tech giants such as NVIDIA, AMD and Apple etc.
“Panel maker Innolux indicated that the earthquake did not damage 3.5G and 4G factories, but did affect 5G and 6G factories at STSP, with restoration estimated to take a week. Innolux has shifted partial production from factories at STSP to a factory in northern Taiwan to minimize the impact on shipments,” the company said.
This natural disaster is expected to have an indirect effect on TMSC’s partner companies as well. AMD however, seems to be in a better position as the company had moved the production of its next generation GPU’s to the South Korean giant Samsung. NVIDIA still retains a strong partnership with TSMC, with whom the company is cooperating in pushing their new line of GPU, going by the name “Pascal”, in the markets.
AMD has been out of news for quite some time however the company is expected to make a very anticipated comeback with its new line of GPU, expected to arrive this year. What are your thoughts regarding the matter? Share your opinions in the comment section bellow.