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HomePC Hardware7.2 scale earthquake in Taiwan affects global supply chain

7.2 scale earthquake in Taiwan affects global supply chain

Natural disasters usually cause big problems, in this case, a 7.2 magnitude earthquake has taken place in Taiwan, one of the regions that produces the largest number of chips worldwide, where one of the most important companies in this sector is located. Some of the largest companies in the manufacture of these components have had to evacuate some of their plants as a precaution, both TSMC as UMC have given the evacuation order.

Being the largest earthquake that has taken place in Taiwan In recent years, this catastrophe has caused the country to paralyze in various aspects, along with the mobilization of all possible resources to help those affected, among whom, so far only four deaths have been confirmed. After the earthquake there have been various aftershocks followed by alerts for a possible Tsunami both on the coast of the country of origin and in other countries such as Japan and the Philippines.

How it affects global chip production

While we wait for more details to be known about the event and to see the evolution of this natural disaster, we can begin to see the effects that this problem will have on the international market when relating it to all electronic devices. The chips it manufactures TSMC They have a large number of customers all over the planet, meaning that a stoppage in their production, even for a short time, directly affects the prices of the majority of devices that we can find that incorporate any of the chips developed by the Taiwanese company.

Furthermore, although the earthquake has passed for now, there is still a risk of other types of catastrophes that accompany earthquakes. As we have indicated before, the Asian country is currently on alert for a possible Tsunami that could reach the coasts. after the earthquake. This implies that, although at the moment the incidents have risen to 933, it is not ruled out that later there may be a greater number of them, so the country will remain on alert for at least the rest of the day, as as they have indicated, canceling various activities such as attendance at educational institutions during the day.

Taiwan Earthquake Latest: At least four people are dead and dozens have been injured after a magnitude-7.2 earthquake struck Taiwan on Wednesday morning.
This story is developing. Follow TaiwanPlus for live updates.

April 3, 2024 • 11:02

Prices of electronic devices may be affected

As we indicated at the beginning, the slightest failure in chip production can affect the world, since Taiwan It is the headquarters of the largest company in this field, and it is TSMC Not only does it have companies like Apple or AMD among its clients, but it practically dominates the market overwhelmingly considering that some companies like MediaTek, Qualcomm or ARM are also included among those that use its products.

During 1999, there was an earthquake of magnitude 7.7 that caused a large number of losses, both human and material, being the largest earthquake recorded to date, followed by today’s earthquake as the second largest in the history of the world. country. This catastrophe also caused the prices of DRAM modules to skyrocket by more than 25%, followed by a shortage that lasted for months, although it should be noted that for now, the earthquake that took place this morning has not caused any losses. similar to what happened 25 years ago.

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.


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