Wafers damaged

Consequences of earthquake weigh on chip specialist TSMC

This is what it looks like in a TSMC chip factory in Taiwan.(Bild: Taiwan Semiconductor Manufacturing Company (TSMC))

Tectonic tremors with consequences: As a result of an earthquake in Taiwan, the Taiwanese chip manufacturer TSMC will have to cut back slightly on its sales target.

For the first quarter of 2025, revenue is now expected to be at the lower end of the known range of 25 to 25.8 billion dollars (around 24 to 25 billion euros), the company announced in Hsinchu on Monday.

Despite the negative impact of the earthquake in January, Taiwan Semiconductor Manufacturing Company (TSMC) is aiming for an operating profit margin of 46.5 to 48.5 percent. The Taiwanese group put the charges at 161 million dollars. The chip manufacturer confirmed its targets for the year as a whole.

Silicon wafers damaged, machines intact
A few weeks ago, a magnitude 6.4 earthquake shook the island state of Taiwan. TSMC evacuated some of its plants as a result. The tremors reportedly rendered some silicon wafers, which form the basis for computer chips, unusable and they had to be disposed of. However, the production machines were not damaged. Operations have since returned to normal. TSMC wants to make up for the production losses and has therefore confirmed its full-year targets.

TSMC is the world's largest chip contract manufacturer with major customers such as Nvidia and Apple. The AI boom provided the Group with plenty of tailwind.