Taiwan Semiconductor (NYSE:TSM) stock fell earlier this morning, with the company trending on social media as well as on business news sites. TSM stock is in focus after the company disclosed that it halted some operations in response to an earthquake that struck Taiwan.
The 7.2 magnitude earthquake hit at around 8:00 p.m. Eastern last night, or 8:00 a.m. local time in Taiwan. Other chip stocks with ties to Taiwan are also moving today. That includes Nvidia (NASDAQ:NVDA), which has its chips manufactured by Taiwan Semiconductor. According to some estimates, TSMC makes “90% of the world’s most advanced processor chips.”
Although they fell in early trading, shares of TSM are back in the green so far today.
The Earthquake’s Impact on Taiwan Semiconductor
Taiwan Semiconductor said that none of its employees were harmed by the earthquake. While a number of workers were evacuated from the company’s facilities, some are already beginning to return to work.
The chipmaker has halted its construction sites for one day in the wake of the natural disaster, per CNBC, citing an unnamed company spokesperson. However, work at a number of locations will restart after inspections are completed.
TSMC noted that its “computers and network systems […] all are operating regularly,” however. There is also no indication that the company has lost production capacity.
As of this writing, TSM stock is up by a little over 1% while NVDA stock is up 0.7%. Finally, shares of semiconductor company Micron (NASDAQ:MU) are up 3% so far today.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
