The Taiwan earthquake is a stark reminder of the risks to the region's chipmaking industry

The world’s largest chipmaker is working to resume operations after a powerful earthquake struck Taiwan. The earthquake, the strongest in 25 years, caused damage and loss of life. Taiwan Semiconductor Manufacturing Company (TSMC), the leading chipmaker, experienced shaking but reported no damage to critical tools. While the earthquake is not expected to have long-term implications for the semiconductor supply chain, it highlights the risks of relying on a single location for chip manufacturing. TSMC produces the majority of the world’s most advanced semiconductor chips, which are essential for various industries, including AI. Efforts are underway to diversify chip production outside of Taiwan.