Disruption In Electronics Supply Chain Due To Taiwan Earthquake Unlikely

New Delhi, Apr 5 (KNN) The electronics industry is unlikely to face significant supply chain disruptions despite a powerful 7.4 magnitude earthquake that rocked Taiwan and forced chip giant Taiwan Semiconductor Manufacturing Co. (TSMC) to halt operations temporarily.

While the quake triggered tsunami warnings and required TSMC to evacuate workers, the semiconductor giant managed to restart production within just 10 hours, reported BL.

Taiwan is a critical hub for semiconductor manufacturing, producing an astounding 80-90 per cent of the world's high-end chips. TSMC, the largest chipmaker globally, supplies advanced chips to tech titans like Apple and Nvidia.

The earthquake's impact on TSMC's operations was initially concerning, but the company's swift response and robust contingency plans minimised potential disruptions.

By Wednesday night, less than 10 hours after the quake struck, TSMC had already resumed production, and employees were able to return to the factory floor by Thursday morning. Early assessments from TSMC indicated minimal damage to critical machinery, including their cutting-edge extreme ultraviolet lithography tools, essential for advanced chip manufacturing.

This prompt recovery has relieved fears of significant supply chain disruptions in the Indian electronics ecosystem and beyond. Industry experts anticipate a minor to potentially moderate impact on chip production capacity, but nothing catastrophic. The timing of the earthquake, during a relatively slow season for the industry, further mitigates the potential consequences.

Global smartphone and laptop manufacturers also expressed cautious optimism, with one executive from a leading brand confirming no immediate impact. However, they acknowledged the need for ongoing updates from chipmakers to assess the full extent of the situation.

(KNN Bureau)