The earthquake has triggered off fears of tsunami and South America has been put on alert.
US Pacific Tsunami warning centre issued a tsunami warning for Chile and Peru, and a tsunami watch for Ecuador.
According to US Geological Survey, the quake hit offshore from Maule, Chile and is believed to have struck 56 miles northeast of ConcepcÍon at a depth of 34 miles.
Santiago reported that it experienced some rattling as the buildings shook from the temblor even leading to blackouts.
Initially the magnitude of the earthquake was believed to be of magnitude 8.3, and was reported to have lasted for 10 to 30 seconds.
There are no immediate reports of casualties or damage.
The Chile earthquake is believed to be 80 times stronger than the earthquake that hit the Carribean country Haiti earlier in 2010.