One day following a massive earthquake in Taiwan, a crucial supplier of chips and displays to original equipment manufacturers (OEMs), industry experts confirmed on Thursday that there would be no disruption to the global supply chain supporting mobile phones and other electronic devices, the media has reported.
According to Pankaj Mohindroo, Chairman of India Cellular and Electronics Association (ICEA), Taiwan is an extremely resilient nation. "We do not foresee any adverse impact on the supply chain of mobiles and electronics," Mohindroo was quoted as saying by news agency IANS.
Operations Restored Within 10 Hours Of Earthquake: TSMC
Taiwan Semiconductor Manufacturing Corporation (TSMC), the largest chipmaker on the island, has disclosed that over 70 per cent of its chip-making operations were restored within 10 hours following the massive earthquake.
According to reports from Nikkei Asia, TSMC, a major contract manufacturer and supplier for Apple confirmed that no essential equipment was damaged despite the 7.2-magnitude earthquake off Taiwan's coast. The tremors also affected the western part of the island, home to numerous tech hubs.
Tech companies in Taiwan were evaluating the situation's impact yesterday and Taiwan Semiconductor Manufacturing Co., the leading chipmaker globally, reported that all personnel were unharmed, but some of its factories were evacuated as a precautionary measure.
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Taiwan plays a significant role in providing critical components for the tech industry, including semiconductors, chip substrates, and printed circuit boards.
Additionally, Nvidia, a leading graphics chip manufacturer, stated that it anticipated no disruption to its supplies due to the earthquake in Taiwan. TSMC has reportedly installed shock absorbers in its chip-making facilities, capable of reducing vibrations by 15 per cent-20 per cent.
It is pertinent to note that for years, industry leaders and government authorities have voiced concerns about the risks associated with concentrating the world's advanced semiconductor manufacturing on an island that, aside from natural disasters, is viewed as a potential military hotspot, said a report by Fortune. This vulnerability became glaringly apparent during the COVID-19 pandemic, which exacerbated the worldwide shortage of these crucial components.
Mindful of the potential threat to Taiwan from the Chinese mainland government, which regards the island as a rebellious province, American officials have advocated for US and Taiwanese companies, including TSMC, to diversify their manufacturing locations.