Taipei, March 5, 2010 (CENS)--A strong earthquake hit Southern Taiwan Science Park in Tainan County yesterday (March 4), forcing major foundries and FPD (flat panel display) plants there to suspend their operation, which will somewhat affect market supply.
As a result, Chi Mei Optoelectronics may have to postpone its production schedule by two days, while the effect on the production schedule of Taiwan Semiconductor Manufacturing Co. (TSMC) and United Microelectronics Corp. (UMC) is around one to one and a half days, which is expected to cut their revenue in March by NT$400 million and NT$160 million, respectively.
The earthquake erupted at 8:18 a.m., measuring 6.4 degree on the Richter scale, with the epicenter located at Jiaxian Township of Kaohsiung County. It triggered a strong tremor in the neighborhood, since the center of earthquake is only five kilometers deep. Southern Taiwan Science Park, in the neighboring Tainan County, was subject to a tremor measuring five degrees on the Richter scale, the strongest ever for it, even higher than four-degree tremor hitting the park during the 921 earthquake.
The strong tremor, plus the disturbance of many aftershocks, has postponed the production schedule of the plants of Chi Mei and Hann Star Display, another FPD maker in the park, by over two days. The suspension may affect their shipment and revenue in March and April, after taking the transportation time for products into account.
Production at the plant of Corning, the world`s leading glass substrate supplier, in Tainan, however, remained intact in the tremor, reported Yu Chih-tun, president of Corning Taiwan.
Meanwhile, TSMC announced yesterday that the tremor has affected the wafer movement of its 12-inch wafer plant in the park by one and a half days. Industry insiders estimated that the effect is about 2,600 wafers, or output for one day, worth some NT$400 million. The effect on UMC is also equivalent to one day`s output, worth NT$160 million in value. Analysts believe that the shortfall will aggravate the shortage of supply for some IC products.
