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Japan quake seen having limited impact on TSMC Q3 revenue
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Latest | FOCUS TAIWAN - CNA ENGLISH NEWS
Taipei, July 30 (CNA) An earthquake that forced a temporary shutdown of Taiwan Semiconductor Manufacturing Co.'s (TSMC) plant in Japan's Kumamoto Prefecture is expected to have a limited impact on third-quarter revenues, an analyst said Thursday.
However, amid weak demand for automotive and smartphone applications, the plant's actual monthly output is about 20,000 wafers.
He estimated that if JASM's production were to be halted for one week, that would result in about US$14 million in potential revenue losses, accounting for only around 0.03 percent of TSMC's projected third-quarter revenue of US$45.2 billion.
The analyst said equipment recovery after an earthquake is a gradual process that involves safety checks, equipment inspections, recalibration and process verification before production can resume.
On late Tuesday TSMC issued a statement saying the Kumamoto plant suffered no major damage and that operations were gradually being restored.