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Shaken Economy: Taiwan's Chip Industry in the Aftermath of a Major Earthquake
News Bulletin Reports
2024-04-03 | 11:32
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Shaken Economy: Taiwan's Chip Industry in the Aftermath of a Major Earthquake
A report by Dana Nasr, English adaptation by Nadine Sassine
With a magnitude of 7.2, Taiwan experienced the biggest earthquake to shake the nation in at least 25 years. There have been a few collapses as a result, as well as fatalities and injuries.
Like Japan, Taiwan was spared a higher death toll due to its sophisticated construction methods that consider earthquake hazards.
However, the earthquake has significant economic ramifications. Taiwan is the world's largest producer of electronic chips, with over 90% of the most advanced chips produced through its company, TSMC.
After the earthquake, TSMC decided to evacuate many of its factories to ensure the safety of its employees. But what about the fate of the chips it exports to major technology companies like Apple and Nvidia?
According to Reuters, the evacuation decision has caused significant disruption in the chip market, with massive financial losses escalating with every passing hour or minute.
Apple, the major importer, has not responded to BBC's request for comment and has not yet provided a clear explanation.
The earthquake's economic repercussions also extend locally. Following warnings of a possible tsunami in Taiwan and neighboring regions such as Japan and the Philippines, there has been a state of general alertness.
News Bulletin Reports
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