Investing.com-- TSMC (TW:2330) (NYSE:TSM) evacuated some of its factories in Tainan early Tuesday, after a 6.4 magnitude earthquake struck southern Taiwan, several media reports said.
The world’s largest contract chipmaker evacuated its facilities in the Tainan science park, as well as other factories in central and southern Taiwan, reports from Nikkei and Reuters said.
A 6.4 magnitude earthquake struck a rural area near the city of Chiayi, Taiwanese authorities said on Tuesday, reporting limited damage from the quake. The quake was close to the city of Tainan, which is a major tech hub in Taiwan.
Tuesday’s quake was the biggest earthquake to hit Taiwan after a 7.2 magnitude quake in April, which battered the country’s east coast.
TSMC’s operations are particularly vulnerable to earthquakes, given the delicate nature of lithographic equipment. Last year’s earthquake had cost the company about $92 million in damages.
Any staggered disruptions to TSMC’s output bode poorly for global chip supplies, given the company’s dominant position in producing advanced chips.
Taiwan is located near the junction of two tectonic plates, and has a history of seismic activity. The most catastrophic earthquake to hit the island was the Chi-Chi quake in September 1999.