Electronics manufacturers said production was not expected to be affected much after an earthquake measuring 6.4 on the Richter scale ripped through the southwestern Taiwanese city of Tainan — an electronics hub where some of Apple Inc.’s largest suppliers are headquartered.
Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), the world’s largest semiconductor foundry by revenue, said some silicon wafers were damaged at its Tainan plant, but maintained that first-quarter shipments would not be affected by more than 1 percent. The company is the only Apple supplier to report damage due to the earthquake so far, Bloomberg reported.
Catcher Technology Co. Ltd., which makes metallic casings for Apple's iPhones, iPads and MacBooks, told Bloomberg that its Tainan manufacturing facilities were not damaged by the quake.
“Supply chain disruption risk is unlikely as most of the factories should be able to be back to normal in a couple of days, and it’s off season in the technology industry,” Vincent Chen, president of Yuanta Investment Consulting, told Bloomberg. “It should be manageable with inventories.”
LCD panel maker Innolux Corp. said all eight of its factories in the region shut down automatically after the quake and that production was being resumed gradually. The company said it was still assessing the earthquake’s impact on production, according to local media.
United Microelectronics Corp., one of the world’s largest contract chipmakers, said its production lines in Tainan plant were running normally and company officials were documenting any damage at its production base in Tainan. Maker of scratch-resistant Gorilla Glass, Corning, told Bloomberg that it did not suffer any damage to its facility and was examining its operation lines.
Tainan’s city government said at least 11 people were killed in Saturday’s earthquake while hundreds were injured. The temblor was followed by about 40 aftershocks, Taiwan's Central Weather Bureau website said.