100 Million Dollar Loss! The largest earthquake in 25 years hit Taiwan on April 3, costing TSMC $100 million. This disaster will lead to a drop of about 50 basis points in the company’s second quarter gross profit margin.
Earthquake Shakes Tech Giant TSMC
What are the Economic Impacts? TSMC had to evacuate its employees, despite being located far from the epicenter of the earthquake. The company reported that its critical equipment and vital tools such as EUV machines were not damaged after the earthquake, but it still suffered significant financial losses.
TSMC lost a lot of money despite not losing power or structural damage to its most valuable tools and equipment. This is a testament to the company’s resilience and how it responds in times of crisis.
Even throughout this difficult time, TSMC maintained its powerful EUV (extreme ultraviolet lithography) machines, which are essential for making today’s tiniest and most efficient circuits like the iPhone 15 Pro. To conclude, the company continues production of 2nm chips, the next big thing in the tech world.
