Overview of the Taiwan Earthquake and Its Impact on Electronics Manufacturers

Overview

A 7.4 magnitude earthquake struck off Taiwan’s east coast at 7:58 a.m. local time on Wednesday near Hualien City, killing nine people and injuring more than 1,000 according to latest reports. It is the strongest quake to shake the island since the tragic 7.3-magnitude 921 Jiji earthquake in 1999 that left more than 2,000 people dead.

Officials described the 7.4 magnitude earthquake as having an energy equivalent to around 32 atomic bombs dropped on Hiroshima, while the 921 Jiji earthquake had the energy of 46 Hiroshima atomic bombs.

Tsunami warnings were issued across Taiwan, Japan, and the Philippines in the wake of the earthquake but have since been lifted. The warnings prompted airlines and airports to suspend flights, which were later resumed.

In response to the quake, medical teams from nearby areas were mobilized to assist in rescue operations, some of which are ongoing for those trapped in tunnels. Additionally, several buildings partially collapsed, with efforts underway to rescue survivors and retrieve bodies.

Government Response & Rescue Efforts

President of the Republic of China (Taiwan) Tsai Ing-wen took to X soon after to report “Disaster response is underway following this morning’s 7.2 earthquake and aftershocks. I’m deeply grateful for the messages of support we have received from around the world, and to our first responders for their life-saving work.” A disaster response center has been set up, with the National Army providing support to local governments where needed.

Vice President and President-elect Lai Ching-te visited Hualien City on Wednesday afternoon to assess the damage and rescue efforts. According to The New York Times, “Mr. Lai, who will become president in May, said the most urgent tasks were rescuing trapped residents and providing medical care. Next, Mr. Lai said, public services must be restored, including transportation, water, and power.”

Major Disruptions to Local Infrastructure

The earthquake has severely disrupted transportation in eastern Taiwan, with the Minister of Transportation and Communication Wang Kwo-tsai noting on Wednesday that restoring the system will be a lengthy process due to ongoing aftershocks.

Regular railway operations and sections of the Suhua Highway (a coastal road that runs from Su’ao Township to Hualien City) remain blocked due to rockfall. While some bullet trains have resumed normal operations, none are currently providing access to Taiwan’s east coast. To address this transportation gap, maritime shuttle services and additional flights have been initiated between Su'ao Port and Hualien Port, with airlines like Mandarin Airlines and UNI Air increasing flights to the area. However, reliance on air transportation remains challenging due to limited capacity, exacerbated by high demand during the upcoming Tomb Sweeping Festival.

The earthquake also caused severe damage to facilities at Hualien Port. This led to the breaking of the Calypso Rope at Pier 25, causing a ship to crash into the pier. As a result, the port is closed, with ongoing inspections revealing significant damage to various piers, potential oil pipe ruptures at Pier 18, and broken wharves at Piers 20 and 21.

Some 308,242 households and businesses were left without power following the quake. Hualien saw the highest impact, although Taichung City (which lies on the western side of Taiwan, opposite Hualien City) also experienced serious power disruptions. Taipower workers rushed to the affected areas and attempted to restore power as soon as possible.

More than 100 buildings have been damaged, according to the National Fire Agency (NFA). Pictures show buildings tilted to one side or collapsed onto the ground. About half of the damaged buildings are in Hualien County, the city nearest to the epicenter of the earthquake.

Intensity Levels and Regional Consequences

The earthquake had a significant impact across various regions. Hualien, Yilan, and Miaoli experienced the highest intensity of 6+ on the seismic scale, resulting in high levels of damage and disruption. Taichung City, Changhua, Hsinchu, Nantou, Taoyuan City, New Taipei City, and Taipei City faced a slightly lower intensity of 5- but still endured considerable consequences. These areas reported high impacts, with infrastructure damage and disruptions to daily life.

In contrast, Taitung, Chiayi, Yunlin, Kaohsiung City, Chiayi City, Hsinchu City, Tainan City, Keelung City, and Pingtung encountered a medium intensity of 4, leading to moderate effects on the affected communities. Meanwhile, Penghu, Lienchiang, and Kinmen experienced lower intensity levels of 3, 2, and 1, respectively, resulting in comparatively lesser impact and damage.

Damage Reports from Suppliers in the Affected Region

There are over 500 manufacturers based in Taiwan, many of which are still assessing the impact on their facilities and operations. Below is a summary of news releases by manufacturing companies on the impact of the Hualien earthquake:

Chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) which has “a 60%-plus share of the global market for contract chipmaking and a monopoly over advanced microprocessors,” suspended their operations in Taiwan following the quake. TSMC said it evacuated staff from some of its facilities in Hsinchu for their safety and “is currently evaluating the impact” to all their facilities (regardless of proximity to the epicenter). There are emerging reports that TSMC found damage at some of their fabs, but information is still forthcoming.

TSMC has also decided to temporarily halt construction on its new facilities around Taiwan and inspect them for safety reasons.

United Microelectronics Corp. (UMC) Powerchip Semiconductor Manufacturing Corp. (PSMC), and flat panel maker Innolux Corp. halted some of their production lines in the Hsinchu Science Park as a preventive step in response to the quake.

Leading optoelectronics companies Largan Precision and Genius Electronic Optical (GSEO) reported that their production capacities remain unaffected and their production lines are operating normally. They stated that any significant impacts in the coming days will be announced on TWSE's Market Observation Post System.

Unimicron, a leading PCB and IC substrate manufacturer, stated that the extent of their losses is still being assessed. Most PCB factories in Taiwan are expected to be affected to some degree. Following the earthquake, the company initiated emergency evacuations at some of its facilities, with no reported major injuries among its personnel.

Micron Taiwan told DIGITIMES that all of its staff in Taiwan are safe, and the company is still assessing the impact on its operations and local supply chains, as the region continues to experience dozens of aftershocks. The company also announced that they would “communicate changes to delivery commitments to our customers after this evaluation is completed.

Winbond, a Taiwan-based memory producer, said the earthquake had no major impact on the company.

Semiconductor silicon wafer fab Global Crystal reported that factory management and equipment engineers are currently inspecting the status of all their facilities.

Quanta, Wistron, Inventec, and Hon Hai pointed out that they have not yet received reports of disasters in domestic factories and are still inspecting the situation of production lines.

Z2Data Assessment on Impact on Manufacturers

Z2Data ran a risk analysis on components manufactured in Taiwan to assess their potential impact. The analysis maps electronic components to their manufacturing site and then categorizes their risk for disruption based on their distance from the epicenter. Risks were ranked Low, Medium, and High.

To learn more about which manufacturers were affected, their major customers, and the components produced in the Taiwan region, download our full report, 2024 Taiwan Earthquake Supplier Impact Report.