Taiwan Earthquake Halts Chipmaker TSMC, May Impact Nvidia Production

A 7.4-magnitude earthquake in Taiwan caused chipmaker TSMC to halt production and evacuate factories. TSMC is Nvidia's main supplier.

The earthquake could impact Nvidia, which relies heavily on TSMC to produce chips that power AI software and graphics processing units.

TSMC said some tools were damaged but critical tools were not impacted. Recovery was at over 70% within 10 hours.

Taiwan experiences frequent earthquakes. TSMC has taken precautions but analysts say it will still take time to restore full production.

Nvidia's reliance on TSMC in Taiwan is seen as its main weakness. TSMC plans to open a plant in Arizona but it has been delayed.