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An earthquake hits Taiwan. The production of memory and chips was not affected, but this is not certain
eleven.12.2021 [18:13],
Gennady Detinich

TrendForce reported that a 6.7 magnitude earthquake struck off the east coast of Taiwan at 21:19 local time on December 10. This did not cause an emergency shutdown of the factories, but the companies were forced to temporarily stop production to check industrial equipment. Nobody reported problems. All factories returned to normal operations. Perhaps this time it carried. In any case, no one changes the forecasts yet.

Image source: TrendForc

The closest to the epicenter of the earthquake were Nanya, MTTW (Micron) and Vanguard RAM factories. Interestingly, there was a recent incident with a fire and a temporary power outage at the MTTW plant, which has already led to a situation that could have an impact on the rise in prices for RAM.

A little further from the epicenter were the enterprises for the contract production of chips from TSMC, UMC, Vanguard and PSMC. They also did not report problems and adjustments to production plans. However, such incidents affect territories that have 21% of the world’s DRAM chip production and 51% of the contract chip production capacity. Therefore, everything that happens in the region must be closely monitored.

It should also be said that the prices for RAM are now going from a peak to a horizontal trajectory, as we reported the other day, and any trouble in the industry can easily change the horizontal flight to the rise. It remains to cross your fingers and wait for good news.