The recent 7.2 magnitude earthquake in Taiwan has caused significant disruption in the semiconductor production industry, which may temporarily affect the airfreight market. This earthquake, the largest in Taiwan in 25 years, has led to nine fatalities, 900 injuries, and has impacted the world’s largest semiconductor production center.
Taiwan, known for producing 60-90% of the world’s semiconductors, is home to key companies like Taiwan Semiconductor Manufacturing Company (TSMC), which supplies chips to tech giants like Apple and Nvidia. Although TSMC had prepared for seismic events, the earthquake still forced the company to halt production and evacuate staff.
Experts predict a potential disruption for customers relying on high-end chips for AI applications due to the earthquake’s impact on semiconductor production. Christopher Braun, head of airfreight for Europe at Forto, estimates that 65% of airfreight volume from Taiwan is attributed to semiconductor exports, highlighting the country’s significant role in the industry.
The earthquake could lead to a shift in semiconductor production to countries like Vietnam and Malaysia in the short term, as companies seek alternatives to maintain supply chains. While airfreight volumes may be affected in the coming weeks, experts believe the impact will not be long-lasting.
TSMC has already resumed operations, but the process of re-calibrating machines may take up to a week. Overall, the earthquake’s effects on the airfreight market are expected to be temporary and manageable.
