Chip shortage again? Will Nvidia be impacted? Taiwan's earthquake sparks concerns

Taiwan Earthquake could likely tighten supply of tech components such as display panels and semiconductors.

Taiwan Earthquake: The massive earthquake in Taiwan sparked concerns about chip shortage in select pockets which could result in major supply-chain glitches. Taiwan was hit by a 7.4 magnitude earthquake, the most powerful in at least 25 years on Wednesday. The quake killed 10 people and nearly 1,070 people were injured while about 700 people were either still missing or stranded. The tremblor could likely tighten supply of tech components such as display panels and semiconductors. However, semiconductor manufacturers have reportedly announced that they have restored operations at their facilities.

Taiwan Earthquake: Bulldozers being used to remove debris near a damaged building in Hualien, after a major earthquake hit Taiwan's east.(AFP)

Chip production resumed?

Taiwan Semiconductor Manufacturing Co (TSMC)- world’s largest contract chipmaker- said that more than 70 per cent of its chip manufacturing equipment had resumed production after a period of suspension due the earthquake. Some parts of the plant were immediately evacuated, but employees later returned to their workstations, it said. It also informed that some of the equipment at certain plants had been damaged during the quake, disrupting production lines although a full assessment was being carried out and efforts were being made to restore plants to full capacity. TSMC supplies to companies like Apple and Nvidia.

What Nvidia said on chip supply chain

Nvidia said that it had consulted with its manufacturing partners and does not expect supply chain disruptions following Taiwan's earthquake.

What is likely to be impacted?

As per research firm TrendForce, shipments of television panels could be affected as manufacturers have already been operating at near full capacity globally to meet demand. This could result in rise in TV panel prices in April.