In the early hours of Tuesday, a magnitude 6.4 earthquake struck near a remote mountainous region roughly 24 miles southeast of Chiayi in Taiwan, causing temporary operational halts at multiple TSMC facilities. The tremor occurred at 12:17 AM local time and was felt in Tainan, home to four of TSMC's manufacturing sites. Workers in both Central and Southern Taiwan were evacuated as a precaution, following standard company protocols designed to ensure employee safety. TSMC initiated thorough structural inspections immediately after the quake. According to company representatives, all crucial infrastructure, such as water supply and power systems, remained fully functional. With no significant damage detected during safety assessments, TSMC has gradually restarted its production lines, minimizing any long-term impact on its global client base.

Despite the relatively brief disruption, the incident exposes the fragility of the semiconductor manufacturing process. Taiwan's frequent seismic activity has the potential to affect the complex manufacturing processes crucial for producing silicon. Given the company's massive consumption of chemicals and silicon ingots, any significant production setbacks at TSMC can resonate through global supply chains. To reduce these geographical and nature-inspired risks, TSMC is investing heavily in new manufacturing facilities elsewhere, notably in Arizona. Although these sites are expected to enhance the company's resilience, they will only account for around 10% of TSMC's total production capacity. Additionally, as TSMC doesn't plan to bring state-of-the-art production to other sites, the company must implement safety features against earthquake protection in its Taiwan facilities to continue production. A minor manufacturing hiccup can equate to billions of losses across the supply chain.