TSMC sees some impact from quake
”TSMC expects no immediate impact due to substantial raw material inventory. However, in the long term, TSMC will seek alternative solutions/supplies as the company believes it could take months for the production of some Japanese suppliers to resume to pre-earthquake levels,” according to a report from Goldman Sachs.
”Tokyo Electron Limited (TEL) is a key equipment supplier for TSMC. It is located in the Sendai area and damages to TEL’s production could therefore affect TSMC’s 12-inch capacity expansion plan. According to TSMC, it may need to seek alternative supplier(s) or, in a worst case scenario, TSMC may consider reconstructing its existing 65-nm equipment into 40-/28-nm equipment,” according to the report.
”TSMC believes the earthquake could lead to temporary reduction in demand due to some supply chain/ component bottlenecks, but thinks that this should just be a temporary delay and not impact its full year outlook,” it added