TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) was able to bring more than 70% of its production lines back online the next day, following the 7.2-magnitude earthquake that struck Taiwan on Wednesday (April 3).
TSMC’s fast recovery showcases the resilience of Taiwan’s chip industry and its workers, and its experience in earthquake prevention and response. It was also a stark warning of the challenges that chip manufacturers face in earthquake-prone areas in Asia, per Nikkei Asia.
Chips, which are found in everything from iPhones and computers to electric vehicles, rely on semiconductors produced by TSMC. As technology advances at a rapid pace, the importance of semiconductors will only increase.
“In chips, we run 24 hours because the equipment is so expensive we can't afford to stop running even for a few hours,” TSMC Founder Morris Chang (張忠謀) has said. “When a piece of equipment broke down at one o'clock in the morning in the U.S., it will be fixed by the next morning at nine. In Taiwan, however, it will be fixed at 2 a.m.”
“That's a work culture competitive advantage. Taiwan has very, very professional, hardworking, and skilled technicians,” Morris added.
After the 1999 earthquake that devastated Taiwan, the government and private sector revised building codes and strengthened disaster management laws. Seismographs were installed in all TSMC factories, and the company installed shock absorbers that can help reduce vibrations by 15%-20%. In addition, TSMC’s largest equipment is bolted to the floors, and wafer storage towers contain stoppers and ceiling braces.
When the most recent earthquake struck, TSMC temporarily suspended operations and evacuated staff from its facilities as a precautionary measure. The next step was to inspect all equipment to detect fire, gasses, or chemical leaks, and determine whether wafers undergoing processing were still intact.
“The processes could be from several hours to a couple days, and to a few weeks for all the processes to go back to normal, depending on how serious the situation is,” one supply manager told Nikkei Asia.
"The swiftness of the recovery is also deeply linked to the work culture in Taiwan's chip industry,” another equipment engineer told the news agency. Taiwan’s hardworking repair and maintenance technicians worked overtime during the Tomb Sweeping holiday to get production back online as quickly as possible.
TSMC announced on Friday (April 5) that besides some minor equipment, no vital machines, such as its extreme ultraviolet (EUV) lithography equipment, had been damaged. TSMC also said it retains its 2024 revenue view, allaying concerns that the earthquake would affect the global semiconductor supply chain.