Benzinga - by Anusuya Lahiri, Benzinga Editor.
Taiwan Semiconductor Manufacturing Co (NYSE:TSM) stock is trading higher Monday amid reports of a 5.5-magnitude earthquake hitting Taiwan’s capital, Taipei. It comes just weeks after the city experienced a severe 7.4-magnitude quake on April 3.
The earthquake occurred at around 5:08 pm local time, the First Post cites the Central Weather Administration.
Also Read: Pay More for Chips Made Outside Taiwan as AI Demand Soars and Global Expansion Continues: Taiwan Semiconductor
Eastern Hualien was the source of Monday’s quake, which also served as the epicenter for the April 3 earthquake.
Reports described the quake as feeling “like one of the strongest quakes or aftershocks since the big one earlier this month.”
This month’s initial quake triggered landslides in the mountainous area, blocking roads and significantly damaging buildings in Hualien’s central city. The earthquake claimed 17 lives, with the most recent victim found on April 13 in a quarry.
Following the April 3 earthquake, the region experienced hundreds of aftershocks, leading to rockfalls in Hualien.
This was Taiwan’s most severe earthquake since a magnitude 7.6 quake hit the island in 1999.
As per April 5 reports, TSMC swiftly resumed construction activities after conducting inspections. Despite concerns about supply interruptions, TSMC ensured the functionality of its safety systems and reported minimal impact on its operations.
While some facilities were affected, TSMC confirmed the safety of its staff and expected full operational recovery by the end of the day, with essential chip-making equipment remaining undamaged.
Amid escalating tensions with China and increasing production costs, TSMC is incorporating a premium for chips manufactured outside of Taiwan into its pricing model.
This adjustment aims to expand its global production capabilities. The leading supplier for Nvidia Corp (NASDAQ:NVDA) reported a strong first-quarter net profit and expects revenue growth fueled by the demand for AI chips.
TSMC stock has gained 50% in the last 12 months. Investors can gain exposure to the stock via the VanEck Semiconductor ETF (NASDAQ:SMH) and the IShares Semiconductor ETF (NASDAQ:SOXX).
Price Action: TSM shares traded higher by 0.54% at $128.41 on the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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