tsmc at risk? covid-19 cases surge in taiwan
Taipei, Tuesday, 13 May 2025.
a new wave of covid-19 is sweeping through taiwan. infections are rising rapidly. experts predict the peak in june. the outbreak could disrupt tsmc’s operations. manufacturing and workforce are at risk. production capacity and stock performance could suffer. investors should watch for updates from tsmc. last week nearly 10000 people sought medical care, a 70% increase. most severe cases are among the unvaccinated, including an infant.
rising cases and tsmc’s vulnerability
Taiwan is grappling with a resurgence of COVID-19 cases, triggering concerns about potential disruptions to Taiwan Semiconductor Manufacturing Co (TSMC) [1]. The spike in infections is projected to peak in June 2025, raising anxieties about TSMC’s manufacturing operations, workforce availability, and overall production capacity [1]. Investors are advised to closely monitor official announcements from TSMC regarding any operational impacts resulting from the escalating health crisis [1]. The surge comes as weekly outpatient visits have reached nearly 10,000, marking a 1.7 or 66% increase compared to the previous week [1][2].
severe cases and vaccine status
Health officials report a rise in severe COVID-19 cases, with a significant proportion occurring among individuals who have not been vaccinated against the JN.1 variant [1]. Among the severe cases is an 11-month-old infant, without pre-existing conditions, who developed severe symptoms requiring intensive care [2]. This highlights the importance of vaccination, as the current national vaccination rate stands at 8.75%, with approximately 2.099 million doses administered as of May 11, 2025 [1][2]. Health authorities urge the public to get vaccinated before the anticipated peak in June [1].
market leadership and geopolitical risks
TSMC’s position as the world’s tenth most valuable company, with a market capitalization of approximately $915 billion as of May 5, 2025, underscores its significance in the global semiconductor industry [7]. However, its location in Taiwan introduces geopolitical risks, particularly given the proximity of Chinese missiles [8]. Disruptions to TSMC’s operations, whether due to health crises or geopolitical tensions, could have far-reaching implications for the global supply chain and the availability of advanced semiconductor technologies [8].
semiconductor dynamics and strategic competition
The semiconductor industry is at the heart of the technological and geopolitical competition between the United States and China [8]. While TSMC and Samsung lead in advanced manufacturing technologies, companies like SMIC in China are also making strides in chip production [8]. U.S. export controls aim to limit China’s access to advanced semiconductors, but these measures also impact American companies [8]. The COVID-19 surge in Taiwan adds another layer of complexity, potentially affecting TSMC’s ability to maintain its market leadership and meet global demand [1].