The massive earthquake that hit Taiwan early on Tuesday, leaving over 1,750 people dead and thousands more trapped under wrecked buildings, has also cost domestic DRAM manufacturers at least $300m because of power outages and fears over the safety of chip fabrication plants. The quake, which measured 7.6 on Richter scale, hit hardest in the central region of Taiwan, south of the massive Hinschu Science Park, which houses the majority of Taiwan’s fab plants.
According to Asian press reports, none of the 28 plants in the park have been damaged but all suffered power outages and it is likely to be days before the facilities can be declared safe to re-open. The days of lost production could lead to a wafer shortage. This, in turn, is likely to drive DRAM prices up in the short term as OEM manufacturers attempt to stockpile memory to ensure against shortages.
Personal computer companies might be faced with shortages in motherboards, some 80% of which are made in Taiwan. Around 10% of finished semiconductors, and 6% of DRAM chips come from Taiwan. US companies that rely heavily on supplies from Taiwan include C-Cube Microsystems Inc and Altera Corp.
