Taiwan plays a role in semiconductor production and has the largest chip manufacturing company that supplies Apple and Nvidia. Although most companies were not close to the epicenter of the earthquake, many of them evacuated their buildings and others closed to make way for inspections.
Although many companies guarantee that they will return to activity, many others have suffered serious disruptions and could lead to delays according to analysts.
“Mitigating the impacts of the earthquake requires careful measures and time to restore production and maintain quality standards, which presents additional obstacles.”
In addition to semiconductors, ultraviolet lithography equipment was also stopped for between eight and 15 hours. Barclays analysts also explained that some semiconductors need to be in a vacuum state permanently for weeks and the process could suffer from the earthquake.
Tuesday’s events could lead, in the short term, to a turbulent period for technology producers focused on countries that import these technologies such as Japan, South Korea, Vietnam and China. With a smaller inventory, companies may increase prices.
