A stress point in the global supply chain has been affected by the largest earthquake to strike Taiwan in at least 25 years.
The chipmaker TSMC produces 90% of its chips on the island; it also opens new tabs. Although its operations are primarily located on the opposite coast from the epicentre, they are nonetheless equipped with delicate machinery that is essential to producing chips for international companies.
While confirming the specifics of the hit, TSMC stated that it has evacuated some fabrication plants and that its safety systems were functioning appropriately. Four people have died as a result of the earthquake, which also caused buildings in Hualien's eastern county to collapse. Aftershocks from Taipei shook Shanghai during the morning.
Severe destruction of chip foundries would have an international impact and emphasise how urgent it is for US President Joe Biden to promote onshore production in order to lessen dependency on Taiwanese exports.
With a stronghold on cutting-edge microprocessors and over 60% of the worldwide contract chip market, TSMC's shares were down 1.4% in early trading.
Stocks of Foxconn, an Apple supplier, sank more than 2%, while Au Optronics, a manufacturer of flat panels, saw a 1.7% decline. As investors await the arrival of US Federal Reserve Chair Jerome Powell and the release of US services and employment data later today, markets as a whole also fell.
The 10-year Treasury yield increased to its highest point since late November on Tuesday, reflecting this as well.
Stronger-than-expected U.S. manufacturing statistics on Easter Monday appeared to set off a wave of selling in the bond market that drove benchmark 10-year rates through significant chart resistance and unleashed even more selling.
In Wednesday's Asian trading, ten-year rates remained stable at 4.35%. The foreign exchange markets have become jittery, with traders hesitant to challenge the resolve of Japanese authorities who have increased their alerts about potential action.
The yen remained stable at 151.55 to the dollar.
Later in the session, European inflation data are also anticipated to show a modest decline.
(Source:www.channelnewsasia.com)
The chipmaker TSMC produces 90% of its chips on the island; it also opens new tabs. Although its operations are primarily located on the opposite coast from the epicentre, they are nonetheless equipped with delicate machinery that is essential to producing chips for international companies.
While confirming the specifics of the hit, TSMC stated that it has evacuated some fabrication plants and that its safety systems were functioning appropriately. Four people have died as a result of the earthquake, which also caused buildings in Hualien's eastern county to collapse. Aftershocks from Taipei shook Shanghai during the morning.
Severe destruction of chip foundries would have an international impact and emphasise how urgent it is for US President Joe Biden to promote onshore production in order to lessen dependency on Taiwanese exports.
With a stronghold on cutting-edge microprocessors and over 60% of the worldwide contract chip market, TSMC's shares were down 1.4% in early trading.
Stocks of Foxconn, an Apple supplier, sank more than 2%, while Au Optronics, a manufacturer of flat panels, saw a 1.7% decline. As investors await the arrival of US Federal Reserve Chair Jerome Powell and the release of US services and employment data later today, markets as a whole also fell.
The 10-year Treasury yield increased to its highest point since late November on Tuesday, reflecting this as well.
Stronger-than-expected U.S. manufacturing statistics on Easter Monday appeared to set off a wave of selling in the bond market that drove benchmark 10-year rates through significant chart resistance and unleashed even more selling.
In Wednesday's Asian trading, ten-year rates remained stable at 4.35%. The foreign exchange markets have become jittery, with traders hesitant to challenge the resolve of Japanese authorities who have increased their alerts about potential action.
The yen remained stable at 151.55 to the dollar.
Later in the session, European inflation data are also anticipated to show a modest decline.
(Source:www.channelnewsasia.com)
