---
title: "Earthquake Hits Taiwan Semiconductor Facilities, Revenue Risks Surface"
description: "Taiwan Semiconductor Manufacturing Co. (TSMC) faces potential production disruptions and financial losses following a magnitude 7.0 earthquake near Taiwan. Precautionary measures were enacted at sever"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/270985074.md"
published_at: "2025-12-29T10:01:57.000Z"
---

# Earthquake Hits Taiwan Semiconductor Facilities, Revenue Risks Surface

> Taiwan Semiconductor Manufacturing Co. (TSMC) faces potential production disruptions and financial losses following a magnitude 7.0 earthquake near Taiwan. Precautionary measures were enacted at several facilities, with sensitive manufacturing tools shutting down. Estimated losses could reach 100 million New Taiwanese dollars. Despite this, TSMC's stock has risen over 53% this year, driven by strong demand from major clients like Nvidia and Apple. The company continues to expand its U.S. operations, with plans for a second facility in Arizona by 2026. TSMC shares were down 0.58% in premarket trading.

**Taiwan Semiconductor Manufacturing Co.** (NYSE:TSM) is under renewed scrutiny following a powerful earthquake near Taiwan, which has raised fresh concerns among investors about potential production disruptions.

A magnitude 7.0 earthquake struck waters off northeastern Taiwan late on December 27, prompting precautionary measures at several Taiwan Semiconductor facilities.

The chipmaker told Reuters on Monday that parts of its Hsinchu Science Park operations reached evacuation thresholds, triggering emergency protocols.

***Also Read: Japan’s Rapidus Moves To Break Taiwan Semiconductor’s Grip With Cheaper AI Chips***

## Production And Equipment Impact

While no structural damage was reported, sensitive manufacturing tools automatically shut down as designed. These included extreme ultraviolet (EUV) lithography systems, which are critical for producing leading-edge chips.

Taiwan Semiconductor may need to scrap or re-inspect wafers that were in process during the quake, according to Chosun Biz.

In southern Taiwan, the impact at the company’s Tainan site in the Southern Taiwan Science Park was more limited, with reported intensity at level four.

However, because the facility operates advanced nodes, such as those utilizing 3-nanometer and 5-nanometer processes, even minor yield disruptions at the site could directly impact revenue, according to local reports.

## **Estimated Financial Exposure**

National Tsing Hua University visiting professor **Zhou Zuo-hui** estimated potential losses could reach 100 million New Taiwanese dollars.

Separate reports noted the company recorded losses of 5.3 billion New Taiwanese dollars following a magnitude 6.4 earthquake that struck southern Tainan in January.

The $1.3 trillion chipmaker is up more than 53% year-to-date. Taiwan Semiconductor has benefited from strong demand as a key supplier to **Nvidia Corp.** (NASDAQ:NVDA) and **Apple Inc.** (NASDAQ:AAPL), outperforming the **PHLX Semiconductor Index’s** 45% gains.

## **U.S. Expansion In Focus**

Taiwan Semiconductor continues to expand U.S. capacity as demand for advanced chips accelerates. U.S. customers now account for more than 75% of revenue this year, up from 62% in 2018.

The company plans to install equipment at its second advanced facility in Arizona by summer 2026, potentially enabling 3-nanometer production in 2027. U.S. officials have stated that the firm’s U.S. investment plan has reached approximately $160 billion and could exceed $200 billion.

Investors are also watching for management commentary at Taiwan Semiconductor’s fourth-quarter 2025 earnings briefing scheduled for January 15.

**TSM Price Action:** Taiwan Semiconductor shares were down 0.58% at $301.06 during premarket trading on Monday. The stock is approaching its 52-week high of $313.98, according to Benzinga Pro data.

***Read Next:***

-   ***Nvidia Fuels Taiwan’s High-Stakes AI Push***

*Image via Shutterstock*

### Related Stocks

- [SOXL.US - Direxion Semicon Bull 3X](https://longbridge.com/en/quote/SOXL.US.md)
- [TSM.US - Taiwan Semiconductor](https://longbridge.com/en/quote/TSM.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| 机构 “最超配” 闪迪，“最低配” 英伟达 | 据摩根士丹利最新的统计：“机构对美国大型科技股的低配程度是 17 年来最大的” 相比 2025 年 Q4 的标普 500 指数权重，“$NVDA 仍然是机构低配程度最大的大型科技股，其次是苹果、微软、亚马逊和博通，而存储巨头闪迪则是 “最超 | [Link](https://longbridge.com/en/news/276289765.md) |
| LPDDR 6 时代来临！AI 需求太猛，下一代 DRAM 将比预期更快进入市场 | LPDDR6 性能较前代提升 1.5 倍，最快下半年正式商用，英伟达、三星及高通等巨头正积极布局。目前多数 HPC 半导体设计企业考虑并行搭载 LPDDR5X 及 LPDDR6 IP，特别是在 4 纳米及以下先进制程芯片的设计中，需求出现得 | [Link](https://longbridge.com/en/news/276431575.md) |
| 黄仁勋预告 “前所未见” 的芯片新品，下一代 Feynman 架构或成焦点 | 黄仁勋预告今年的 GTC 大会上发布” 世界从未见过” 的全新芯片产品，分析认为新品可能涉及 Rubin 系列衍生产品或更具革命性的 Feynman 架构芯片，市场预期 Feynman 架构将针对推理场景进行深度优化。 | [Link](https://longbridge.com/en/news/276310964.md) |
| 新预算案积极发展 AI 和先进制造 分析：半导体股有望受益 \| 联合早报网 | 新加坡最新财政预算案强调发展人工智能和先进制造，计划在纬壹建立 AI 园区以促进创新。分析师认为，这将推动本地半导体和先进制造股价上涨。政府还将为 AI 相关支出提供 400% 税额扣除，预计将吸引更多企业投资。 | [Link](https://longbridge.com/en/news/276006533.md) |
| 英伟达被撬墙角：OpenAI 首次发布 Cerebras 芯片支持模型 | OpenAI 周四发布的 GPT-5.3-Codex-Spark 专为实时编码设计，是 OpenAI 最新代码自动化软件 Codex 的精简版，也是 OpenAI 上月与 Cerebras 签署超 100 亿美元协议后的首个成果。OpenA | [Link](https://longbridge.com/en/news/275817804.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
