Taiwan in trouble. There has not been such an earthquake for 25 years
Taiwan is struggling with the effects of a record-breaking earthquake on its east coast. The losses are already counted in millions, and there are hundreds of people injured.
Several hours ago in Taiwan the place was very strong earthquake. According to the Taiwan Meteorological Agency, it was of magnitude 7.2 on the Richter scale, but the Japanese equivalent gives a value of 7.7. This is the most powerful such event in this part of the globe since 1999.
TSMC estimates its losses at $60 million
The epicenter of the earthquake was on the east coast Taiwan, about 18 kilometers from the city Hualien. However, the effects were felt even in the capital, Taipei. Tsunami warnings have been issued in both the Philippines and Japan. The latest tally shows 9 deaths and 900 people injured.
More than 91,000 homes were cut off from electricityand the largest semiconductor producers – TSMC and UMC – evacuated their employees. According to CNN at least 26 buildings collapsed15 of them in Hualian Province.
Apart from the human costs the earthquake in question may also significantly affect chip productionpotentially causing shortages or raising prices for key components. This, in turn, would lead to higher electronics costsfrom laptops and smartphones, through PC parts, to TVs.
Although TSMC facilities are mainly located on the West Coast, even brief production disruptions can lead to large price increases and disruptions to global supply chains. After the 1999 earthquake, DRAM module prices increased by over 25%and shortages persisted for many months.
