TSMC retains 2024 revenue view in sign of limited impact of earthquake

[Daniel Nenni]

Reuters
Fri, April 5, 2024 at 7:36 AM PDT·1 min read

FILE PHOTO: Illustration shows TSMC (Taiwan Semiconductor Manufacturing Company) logo

(Reuters) - Taiwan Semiconductor Manufacturing Co said on Friday its full-year revenue would not be impacted by the massive April 3 earthquake, allaying concerns of a hit to the global semiconductor supply.

"TSMC maintains its full-year revenue guidance of low-to-mid twenties percentage growth given at the January institutional investors' conference," the world's biggest contract chipmaker.

Taiwan plays an outsized role in the global chip supply chain and the country's biggest earthquake in at least 25 years on Wednesday had fueled worries of a potential disruption.

Apart from TSMC, the island is also home to UMC, Vanguard International Semiconductor, and Powerchip Semiconductor Manufacturing.

Apart from certain production lines in areas that experienced greater impact, equipment in Taiwan fabs have largely been fully recovered as of Friday, the company said.

TSMC said it was making a full evaluation of the impact and communicating necessary updates to customers.

On Thursday, the company resumed work at its construction sites after pausing for a day for inspections.

TSMC retains 2024 revenue view in sign of limited impact of earthquake

"TSMC maintains its full-year revenue guidance of low-to-mid twenties percentage growth given at the January institutional investors' conference," the world's biggest contract chipmaker. Taiwan plays an outsized role in the global chip supply chain and the country's biggest earthquake in at...

www.yahoo.com

 

[hskuo]

Reuters
Fri, April 5, 2024 at 7:36 AM PDT·1 min read

FILE PHOTO: Illustration shows TSMC (Taiwan Semiconductor Manufacturing Company) logo

(Reuters) - Taiwan Semiconductor Manufacturing Co said on Friday its full-year revenue would not be impacted by the massive April 3 earthquake, allaying concerns of a hit to the global semiconductor supply.

"TSMC maintains its full-year revenue guidance of low-to-mid twenties percentage growth given at the January institutional investors' conference," the world's biggest contract chipmaker.

Taiwan plays an outsized role in the global chip supply chain and the country's biggest earthquake in at least 25 years on Wednesday had fueled worries of a potential disruption.

Apart from TSMC, the island is also home to UMC, Vanguard International Semiconductor, and Powerchip Semiconductor Manufacturing.

Apart from certain production lines in areas that experienced greater impact, equipment in Taiwan fabs have largely been fully recovered as of Friday, the company said.

TSMC said it was making a full evaluation of the impact and communicating necessary updates to customers.

On Thursday, the company resumed work at its construction sites after pausing for a day for inspections.

TSMC retains 2024 revenue view in sign of limited impact of earthquake

"TSMC maintains its full-year revenue guidance of low-to-mid twenties percentage growth given at the January institutional investors' conference," the world's biggest contract chipmaker. Taiwan plays an outsized role in the global chip supply chain and the country's biggest earthquake in at...

www.yahoo.com

This news seems surprised lots of western media.

 

[Daniel Nenni]

This news seems surprised lots of western media.

Is it just western media? It seems to me all media expects the worse to get clicks, no matter what the collateral damage may be. I'm sure TSMC will do a more detailed update during the upcoming investor call on April 18, 2024 (Thu).

 

[Fred Chen]

TSMC assessed $60 million impact, but this is within the range of their annual revenue estimate.

TSMC Predicts $60m Hit From Taiwan's Biggest Quake in 25 Years

The world's top chipmaker said impacts from the quake could hit its Q2 earnings, but the costs could be much higher if other firms' plants were affected

www.asiafinancial.com

 

[Maximus]

TSMC assessed $60 million impact, but this is within the range of their annual revenue estimate.

TSMC Predicts $60m Hit From Taiwan's Biggest Quake in 25 Years

The world's top chipmaker said impacts from the quake could hit its Q2 earnings, but the costs could be much higher if other firms' plants were affected

www.asiafinancial.com

The 60 million number was given by analysts not tsmc official also it was given just few hours after earthquake. The accuracy is very doubtful and definitely does not count the productivity loss. Good news is electricity did not shut down this time unlike 1999 earthquake so the impact is much milder.

 

[Daniel Nenni]

The 60 million number was given by analysts not tsmc official also it was given just few hours after earthquake. The accuracy is very doubtful and definitely does not count the productivity loss. Good news is electricity did not shut down this time unlike 1999 earthquake so the impact is much milder.

Wafers will be lost but I suspect it will be minimal because, as you said, power was not lost. TSMC will wait until the investor call to discuss this in detail, or right before it.

 

[Fred Chen]

The 60 million number was given by analysts not tsmc official also it was given just few hours after earthquake. The accuracy is very doubtful and definitely does not count the productivity loss. Good news is electricity did not shut down this time unlike 1999 earthquake so the impact is much milder.

Barclays was quoting TSMC but even with that preliminary estimate, it would not affect the full-year revenue which is much larger.

 

[Maximus]

Asianometry just published a video about how tsmc handle an earthquake.
(1) Shell structure improvement
(2) Equipment improvement
(3) Stable electricity (the most important one, 95% loss in the 1999 earthquake were resulted from electricity shutdown)

In the 1999 earthquake, the electricity network in Taiwan was weak so it took weeks to recover electricity. After that, Taiwan government spent dozens of billions dollars to upgrade the network and built storage capability.

This time, the storage electricity played an important role to back up the power loss immediately. Then the increased solar energy (earthquake occur at 8AM) came in very soon after to prevent electricity crash.

 

[MKWVentures]

I am sure Bloomberg or Facebook or the National Enquirer said the impact would be huge. within a day people who work at TSMC and people who live in Taiwan said there was not a major impact to the Factories.