Data News > The Impact of the Taiwan Earthquake on Semiconductor Stocks

The Impact of the Taiwan Earthquake on Semiconductor Stocks

By KlickAnalytics Data Insights  |   April 3, 2024 08:02PM ET

Key Points

- Virtual reality stocks are on the rise, not just in the gaming industry
- Undervalued semiconductor stocks are worth keeping an eye on in April 2024
- TSMC, the world's largest chipmaker, faced production delays after a powerful earthquake in Taiwan
- The earthquake raised concerns about the concentration of semiconductor manufacturing in one region
- TSMC's stock was affected by the earthquake, but experts remain bullish on its future

The recent earthquake in Taiwan has had a significant impact on the semiconductor industry, particularly on the stocks of major chipmakers. While virtual reality stocks are gaining momentum beyond the gaming sector, the earthquake has raised concerns about the concentration of semiconductor manufacturing in one region. Undervalued semiconductor stocks are also worth keeping an eye on in April 2024.

Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), the world's largest chipmaker, faced production delays after a powerful earthquake struck Taiwan. The earthquake forced TSMC to suspend operations at some sites, raising concerns about disruptions to the global tech supply chain. This could potentially lead to production delays for companies like Apple and Nvidia, which rely on TSMC's chips.

The earthquake renewed concerns about having too much leading-edge semiconductor manufacturing located in one region. This has led to a debate among investment committees about how to trade stocks like Intel, Taiwan Semiconductor, and Booking Holdings. The earthquake has highlighted the vulnerability of the global tech supply chain to natural disasters and other disruptions.

Despite the impact of the earthquake, TSMC and other major Taiwanese semiconductor foundries appear to have escaped relatively unscathed. While chip production was momentarily halted, TSMC expects to resume production soon. However, the earthquake has raised concerns about the strain on the semiconductor industry, which is already facing challenges due to increased demand for AI-related chips.

The earthquake has also affected the stock prices of major semiconductor companies. Intel shares fell as ballooning losses at its contract chip-making business signaled the company could take years to catch up with the profitability of TSMC. TSMC's stock also fell after the company disclosed that it had halted some operations in response to the earthquake. However, experts remain bullish on TSMC's future, citing its robust growth and dominance in the semiconductor market.

the earthquake in Taiwan has had a significant impact on the semiconductor industry, particularly on the stocks of major chipmakers like TSMC. While the earthquake raised concerns about the concentration of semiconductor manufacturing in one region, experts remain optimistic about the future of TSMC and the semiconductor market as a whole.

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