The share price of semiconductor stocks in the US markets foresaw a downward trend following the report on the halt of Taiwan Semiconductor Manufacturing Co. (TSMC) halting some of its operations after Taiwan was hit by a magnitude 7.4 earthquake off the east coast. The pre-market prices for the major shares mentioned are as follows:
The pre-market share price of NVIDIA Corporation (NASDAQ: NVDA) fell by 0.73% or $6.52 to $888.
The pre-market share price of Advanced Micro Devices, Inc. (NASDAQ: AMD) declined by 0.63% or $1.13 to $177.57.
The pre-market share price of Intel Corp. (NASDAQ: INTC) dropped by 4.64% or $2.04 to $41.90.
The pre-market share price of Qualcomm Inc. (NASDAQ: QCOM) slid by 0.49% or $0.83 to $170.21.
The pre-market share price of Arm Holdings PLC – ADR (NASDAQ: ARM) decreased by 0.41% or $0.51 to $123.77.
Earlier today, Taiwan Semiconductor Manufacturing Co. (TSMC), the leading producer of advanced chips globally, took precautionary measures following the most substantial earthquake to hit Taiwan in the past 25 years. In response to the seismic event with a magnitude of 7.4 off the east coast, TSMC suspended operations of certain chipmaking equipment and conducted evacuations of personnel.
As a key provider of contract manufacturing services to tech giants like Apple Inc. and Nvidia Corp., TSMC relocated employees from specific zones while evaluating the repercussions of the earthquake. Similarly, local competitor United Microelectronics Corp. (UMC) also ceased operations of machinery at select plants and evacuated facilities in Hsinchu and Tainan, according to the company’s announcement.
The seismic vulnerability of Taiwan’s semiconductor manufacturers poses significant risks due to the meticulous production processes of essential components for devices ranging from iPhones to automobiles. Even minor vibrations have the potential to disrupt entire batches of precision-crafted semiconductors. In response to the earthquake, TSMC shares experienced a 1.5% decline in early trading, with UMC also registering a slight drop of less than 1%.
“TSMC’s safety protocols are functioning as intended. As per company protocols and to ensure personnel safety, certain fabs were evacuated,” stated TSMC. “We are currently in the process of assessing the impact and gathering more details surrounding the situation.”
