TSMC has recently verified that its crucial production site, Fab 21, situated in Arizona, USA, underwent a significant power disruption in mid-September of this year. According to independent tech journalist Tim Culpan, who received information from unnamed insiders within the semiconductor sector, the power cut was initiated by an electrical malfunction at the Linde Group, an industrial gas supplier contracted by TSMC. This malfunction disrupted the delivery of essential gas materials necessary for chip fabrication, compelling Fab 21 to cease operations for multiple hours. Consequently, TSMC was compelled to discard numerous wafers that were in the process of being manufactured for prominent clients like Apple, NVIDIA, and AMD.

While TSMC manages most of its gas supply independently in Taiwan, it opted to outsource this particular service for its Arizona plant. Despite Fab 21 being outfitted with its own emergency power generators, the power outage still managed to interrupt the flow of vital production materials.

TSMC mentioned that Fab 21 has started generating positive revenue, yet the net profit is still subject to various influences and should be evaluated over a longer timeframe. The company also highlighted that expanding plants overseas will result in a decrease in gross margins over the forthcoming five years. This incident could potentially be a key factor behind the 99% quarterly decline in Fab 21's net profit during the third quarter.

TSMC underscored that the repercussions for customers are anticipated to be negligible. They also noted that financial losses might be offset by insurance claims, and historically, production volume and revenue losses from similar events have usually been recuperated in the subsequent quarter.