Array
(
    [content] => 
    [params] => Array
        (
            [0] => /forum/index.php?threads/tsmc-estimates-60-000-damaged-wafers-after-taiwans-6-4-magnitude-earthquake.21945/
        )

    [addOns] => Array
        (
            [DL6/MLTP] => 13
            [Hampel/TimeZoneDebug] => 1000070
            [SV/ChangePostDate] => 2010200
            [SemiWiki/Newsletter] => 1000010
            [SemiWiki/WPMenu] => 1000010
            [SemiWiki/XPressExtend] => 1000010
            [ThemeHouse/XLink] => 1000970
            [ThemeHouse/XPress] => 1010570
            [XF] => 2021770
            [XFI] => 1050270
        )

    [wordpress] => /var/www/html
)

TSMC estimates 60,000 damaged wafers after Taiwan's 6.4 magnitude earthquake

XYang2023

Well-known member
Taiwan's recent quake may lead to significant wafer losses for major semiconductor exporter TSMC.

Taiwan TSMC logo. /Courtesy of AP News Agency

Taiwan TSMC logo. /Courtesy of AP News Agency

The world's largest foundry (semiconductor contract manufacturing) corporation, TSMC, has reportedly suffered greater damage from the recent magnitude 6.4 earthquake in southern Taiwan than from the previous year’s magnitude 7.2 quake in April. There are projections that the number of damaged wafers could exceed 60,000 in the future.

Taiwanese media, including China Times, reported on the 24th, citing sources, that the damage situation at the TSMC factory within the Southern Taiwan Science Park (Nankang) due to the magnitude 6.4 earthquake that struck the Tainan region on the 21st is more serious than expected.

The sources said that damage occurred to about 30,000 wafers at the 14 fabs (semiconductor manufacturing plants) producing 12-inch wafer products and 18 fabs. They added that the wafer damage at 14 fabs, which produce mature process semiconductors, is more severe than that at 18 fabs, which produce advanced 3-nanometer (1 nanometer is one billionth of a meter) and 5-nanometer process products, predicting that the total damage could exceed 60,000 wafers.

Earlier, the Taiwan Economic News predicted that the damage to TSMC's wafers would be between 10,000 and 20,000 units due to the earthquake, but the possibility of greater damage has been raised. The wafers produced from the 3-nanometer and 5-nanometer processes at Nankang are supplied to companies such as Nvidia, AMD, and Intel.

TSMC announced that most of its factories were normalized the previous day, although some production lines are still under recovery. Following the earthquake, TSMC evacuated factory workers in the central and southern regions of Taiwan as a precautionary measure. TSMC estimated that its total profit margin for the second quarter of the previous year dropped by about 0.5 percentage points due to the magnitude 7.2 earthquake in April.

 
Last edited by a moderator:
I would wait to hear the official number from TSMC. The TSMC FinFET fabs were built specifically to resist earthquake damage.

From ChatGPT:

On January 21, 2025, a 6.4 magnitude earthquake struck southern Taiwan near Chiayi City. Taiwan Semiconductor Manufacturing Co. (TSMC) reported that all its sites were operating normally following the quake. As a precaution, TSMC evacuated workers at some sites in central and southern Taiwan. Post-earthquake structural inspections confirmed that all structures were safe, and operations were gradually resuming. Additionally, TSMC's construction sites were unaffected and continued regular operations after environmental safety checks.

Reuters

In April 2024, a 7.2 magnitude earthquake hit eastern Taiwan, causing significant damage and resulting in 13 fatalities. TSMC temporarily suspended operations and evacuated several plants following the quake. The company estimated losses of approximately NT$3 billion (US$92 million) due to equipment damage and production halts.

US News

Following the 1999 Chi-Chi earthquake, TSMC implemented comprehensive earthquake protection management plans that surpass legal requirements. These measures include thorough investigations of all buildings and facilities, installation of dampers to enhance structural integrity, and adoption of advanced anti-seismic technologies to assess and mitigate risks.

台積公司 - 發揮永續影響力,驅動美好的改變

Taiwan's location near the junction of two tectonic plates makes it prone to earthquakes. TSMC's proactive measures aim to minimize operational disruptions and ensure the safety of its personnel and facilities during seismic events.
 
Yeah, at this stage this is a yearly event.
Last year they said it would effect gross margin by about 50 basis points - however it didn't. In Q2 Gross margin actually increased by 10 basis points. It seems like the damage caused is so small it's not even noticeable in the figures.
 
Yeah, at this stage this is a yearly event.
Last year they said it would effect gross margin by about 50 basis points - however it didn't. In Q2 Gross margin actually increased by 10 basis points. It seems like the damage caused is so small it's not even noticeable in the figures.
The gross margin could have been even higher than the earthquake, so it's hard to tell if it would have been noticeable..
 
It wouldn't surprise me if 60K wafers were affected, given the sensitivity of Lithography equipment. I know Lithography tools have been known to detect events that were 100's of miles away. However, wafers being affected and wafers being scrapped are not the same thing. The lithography process is re-workable, after all.
 
Back
Top