Taiwan's Seismic Challenge and Nvidia's Vulnerable Supply Chain The Fragility of Semiconductor Supply in the Wake of Natural Disasters When a 7.4-magnitude earthquake, the largest to strike Taiwan in the last quarter-century, shook the island nation, it sent ripples beyond its geographical boundaries, stirring the waters of the global semiconductor industry. The direct impact was felt by Taiwan Semiconductor Manufacturing Company (TSMC), a behemoth in chip production and a key supplier to Nvidia, the trailblazer in AI and GPU technology. TSMC's Staggered Response to an Unforeseen Calamity In the chaos of the moment, TSMC took decisive action. Evacuations and temporary production halts were necessary as the company looked to safeguard its facilities and, more critically, its workforce. TSMC's quick recovery—more than 70% tool recovery within 10 hours—is commendable. But the aftershocks of such a disruption simultaneously signal robust disaster readiness and hint at und...
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