When so much critical infrastructure is based in one place, the dangers of disruption to supply chains can run high. The market reaction to Taiwan’s powerful earthquake on Wednesday showed how companies in the semiconductor supply chain have been ready for this moment for years.
The 7.4 magnitude earthquake struck at around 8 a.m. local time, with the epicenter nearly 100 miles away from the capital, Taipei. Around a dozen people were reported to have been killed in the quake.
Most of the casualties were in Hualien, the closest city to the epicenter, with reports of many trapped and injured and widespread damage.
Chip Producers Unfazed
The market reaction was muted, with the main Taiwan Weighted index finishing just 0.6% lower.
The impact could have been much worse, however, ...