By Brian Swint
Taiwan's biggest earthquake in 25 years was causing a selloff in the country's semiconductor stocks.
U.S.-listed shares of Taiwan Semiconductor Manufacturing, one of the biggest makers of chips in the world and a major supplier to Apple and Nvidia, were falling 0.1% when the market opened. The company said it evacuated factories after the quake but workers are now returning.
The Fubon FTSE TWSE Taiwan 50 ETF exchange-traded fund closed 0.4% lower in Taiwan. Foxconn, the Apple supplier formally known as Hon Hai Precision Industry, finished the day unchanged in local trading.
American depositary receipts of ASE Technology Holding fell 0.4% and United Microelectronics' U.S.-listed stock slipped 1.1% in early trading.
Apple rose 0.1% and Nvidia retreated 0.6%. Micron Technology was up 0.8%, and Intel was falling 6.7%.
The tremor, which killed at least seven people and injured more than 700, happened Wednesday morning local time and occurred just off the eastern coast of the island. Beyond the destruction it caused, the earthquake is the latest threat to global supply chains following the bridge accident in Baltimore last week that closed a major U.S. port.
It may also add to pressure on companies trying to shift production out of Taiwan to diversify supply chains as the U.S. and China impose restrictions on exports.
A tsunami warning was issued in Japan but later lifted. Railways and flights were disrupted, and buildings on the island partially collapsed.
The magnitude of the earthquake was registered at 7.4. In 1999, a 7.6-magnitude earthquake in Taiwan killed more than 2,400 people and injured more than 11,000.
Write to Brian Swint at brian.swint@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 03, 2024 10:31 ET (14:31 GMT)
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