The recent earthquake in Taiwan has delivered a heavy blow to the tech world ,especially to Apple chip manufacturer TSMC (Taiwan Semiconductor Manufacturing Company). Recent reports of capacity constraints at TSMC following the Covid 19 threat have put Apple’s production plans under threat since TSMC is a major supplier of Apple-designed processor chips.
Taiwan is a geographically unstable country that is the victim of constant earthquakes but the recent one was just far to violent. TSMC’s factories are designed to withstand such natural calamities but when these facilities are subjected to these natural disasters, it affects operations. Work authorities have said that it will take some time to finish and there will be no major damage but reports suggest that some potential for aftershocks exist and the production line was halted for some time.
The situation could not have gotten any worse for Apple with another earthquake. According to a recent report by WSJ, if there is a production delay on chips then it can create problems in the supply chain for the tech giant as it is expecting new launches across products. This, in turn, could affect the supply of new devices, including future iPhone models, iPads, and Macs, for instance, causing time delays that would result in frustrated consumers.
Furthermore, it highlights how international production systems for tech are susceptible to disruption. The example of Apple is just one of those companies that rely on a single supplier for a major part of their components. This earthquake is the latest example of the huge dangers of such dependencies.
This, however, may lead apple to rethink its supply chain strategy and because of this may try to acquire raw material from different sources or build more sustainable infrastructure. All the world is waiting for the other side of the island where TSMC is located to be repaired until it resumes full production and even future duration of impacts brought by this natural disaster. The situation demonstrates the readiness of disaster in the tech manufacturing industries and how local events have consequences worldwide.
