📊Executive Summary

Taiwan Semiconductor Manufacturing Co. (TSMC) is facing potential production disruptions following a magnitude 7.0 earthquake near Taiwan on December 27, 2025. Although no structural damage was reported, precautionary measures were enacted at TSMC's facilities, including the shutdown of sensitive manufacturing tools. This could lead to the scrapping or re-inspection of wafers in process, with potential losses estimated at 100 million New Taiwanese dollars. The earthquake's impact on TSMC's advanced nodes, such as 3nm and 5nm processes, could directly affect revenue, particularly given the company's significant role as a supplier to major clients like Nvidia and Apple. TSMC's expansion plans in the U.S. are also highlighted, with a focus on increasing capacity to meet growing demand....