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Taiwan Earthquake Shows Shows Minimal Impact on Wafer Fabs, But Tightness in the TV Panel Supply May Worsen in 1Q25
January 21, 2025 | TrendForceEstimated reading time: 1 minute
A magnitude 6.4 earthquake struck southern Taiwan, with its epicenter in Chiayi, at 12:17 AM on January 21, 2025. TrendForce’s preliminary assessment found that nearby wafer fabs had not suffered significant damage.
TSMC and UMC’s Tainan fabs, which experienced seismic intensity levels above 4, initiated immediate personnel evacuation and equipment shutdowns for inspections. While no critical equipment damage was reported, unavoidable debris was generated inside furnace equipment. Tainan, a key hub for panel manufacturing, may face disruptions that could exacerbate the already tight TV panel supply situation in 1Q25.
TrendForce notes that TSMC operates an 8-inch fab and two 12-inch fabs in Tainan, producing a wide range of technologies from mature nodes to advanced 5/4nm and 3nm processes. UMC runs a 12-inch fab in the region, supporting nodes from 90nm to 14nm. Operations at these facilities began resuming on the morning of January 21, with TrendForce noting that the earthquake’s impact on actual production appears to be within controllable limits.
While the Tainan fabs produce a diverse range of products, the overall utilization rate for mature processes is currently at 70–80%, reflecting the seasonal lull in component demand. This provides significant flexibility for production adjustments. For advanced nodes, TrendForce believes most current wafer starts are for inventory preparation, and the short downtime or minor debris impact can be easily mitigated. As a result, no significant disruptions are anticipated.
Tainan is home to major display manufacturer Innolux, with key facilities including Fab 2, Fab 3, Fab 5, Fab 6, and Fab 7, while nearby Kaohsiung hosts Fab 8, Fab 8b, and T6. Due to the age of some of these plants and the intensity of the earthquake, several Tainan fabs reported equipment shutdowns, with the extent of damage still under evaluation.
TrendForce warns that this event could further strain the already tight TV panel supply in 1Q25, compounding existing challenges for the display industry.
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