How Taiwan's Leading Semiconductor Group Responds to Earthquakes

Semiconductor giant TSMC built its factory with 25% higher requirements than Taiwan's construction standards, helping them survive a 7.4-magnitude earthquake.

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest semiconductor chipmaker, evacuated its employees immediately after a 7.4-magnitude earthquake shook the island on April 3. TSMC reported no major damage and workers returned to work within hours, despite it being the strongest earthquake in Taiwan in 25 years.

TSMC reported a small number of damaged machines, but 70% were back up and running within 10 hours of the earthquake. Critical equipment such as multimillion-dollar extreme ultraviolet lithography systems remained intact.

"TSMC is mobilizing all resources to fully restore production operations," the group announced, saying that affected facilities resumed production overnight.

TSMC factory in Taiwan. Photo: AFP

Observers say TSMC suffered little damage because it has extensive experience and is well-prepared to deal with earthquakes. Taiwan sits on the Pacific Ring of Fire, an area where 2,200 earthquakes occur each year, more than 200 of which are strong enough to be felt. This reality forced the company to make changes to ensure production.

“Seismic activity has always been a challenge for semiconductor manufacturing, which requires the highest precision of any industry,” said Mark Williams, chief Asia economist at Capital Economics. “But Taiwanese chipmakers are used to it.”

In 2016, the group’s first-quarter revenue fell 8.3% after a 6.6-magnitude earthquake rocked its Tainan factory. TSMC then reinforced the ceilings of its factories with braces and installed anti-slip stoppers on its shelves.

This includes installing shock absorbers that help disperse earthquake energy, reducing the impact of seismic events on infrastructure by 15-20%. In 2015, the company also installed an early earthquake warning system.

Hong Hanh (According to Fortune )

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