--- 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 | |-------|-------------|-----| | Mouser Electronics to Highlight Latest Semiconductors and Technologies for Engineers at DesignCon 2026 | Mouser Electronics will showcase its latest semiconductors and technologies at DesignCon 2026, taking place from Februar | [Link](https://longbridge.com/en/news/276069036.md) | | SemiQ partners with distributor NAC Semi across North America | SemiQ Inc has partnered with NAC Semi to enhance the distribution of its silicon carbide (SiC) power semiconductors acro | [Link](https://longbridge.com/en/news/276074309.md) | | Key facts: Samsung stock soars 5.4%; HBM4 chip production begins | Samsung Electronics (005930) stock hit a record high, rising 5.4% after a break. 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