Will Taiwan’s earthquake create another chip shortage? Will it impact Nvidia? Here’s all you need to know – Crypto News – Crypto News
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Will Taiwan's earthquake create another chip shortage? Will it impact Nvidia? Here's all you need to know Will Taiwan's earthquake create another chip shortage? Will it impact Nvidia? Here's all you need to know

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Will Taiwan’s earthquake create another chip shortage? Will it impact Nvidia? Here’s all you need to know – Crypto News

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After the massive 7.4 magnitude earthquake hit Taiwan on Wednesday, concerns about chip shortage have sparked in select pockets. According to a report by Hindustan Times (HT), there are concerns that it is likely to result in major supply-chain glitches.

The Wednesday earthquake was the most powerful in at least 25 years and has killed 10 people while injuring more than 1,070 people.

The report said that the Taiwan earthquake may lead to a shortfall in supply of tech components like semiconductors and display panels.

Notably, Taiwan is home to some of the biggest global tech firms.

For example, the Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s largest maker of chips. The company, founded by Morris Chang, supplies chips to companies like Nvidia and Apple.

Other important companies from Taiwan are MediaTek, Hon Hai Precision Industry Co Ltd (Foxconn) and Quanta Computer.

According to reports, the earthquake may also impact the prices of Television panels.

The process of chip- production i highly sensitive and vulnerable to external contamination.

According to a report by The Financial Times (FT), a smallest vibration during the process may “severely” impact the chips and may produce a batch which is unfit to use.

Chipmakers allay fears

TSMC has, however, said that more than 70 per cent of its chip manufacturing machinery has already resumed the production.

Nvidia also announced that it has gotten in touch with its partners and does not expect any disruptions in the supply of semiconductor chips.

Lately, several companies like TSMC and Samsung have decided to move away from the “Ring of Fire” to open their new facilities in Arizona and Texas in the US. Both of these regions have low vulnerability to earthquakes.

Taiwan earthquake biggest since 1999

The earthquake that hit Taiwan was the biggest since 1996, when another one of 7.6 magnitude killed 2,400 people.

This week’s earthquake has left about 700 people missing or stranded, apart from those killed or injured.

Rescue efforts are underway across the country.

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Published: 04 Apr 2024, 05:12 PM IST

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