Strong Earthquake in Kumamoto, Japan Hits Industry; Concerns Grow Over Semiconductor Supply Chain Disruptions

The aftermath of a magnitude 7.1 strong earthquake that struck Kumamoto Prefecture in Japan has led to the suspension of operations at local finished car and semiconductor manufacturing equipment plants for a second consecutive day, spreading damage across the industrial sector as a whole.

In particular, the Kumamoto region is an area where the Japanese government actively attracted a plant from TSMC, the world's largest semiconductor foundry, and pushed forward with the creation of a semiconductor cluster to revive its semiconductor industry. Concerns are now rising that if the earthquake damage is prolonged, it could have a negative impact on global supply chains.

According to reports from Kyodo News and other outlets on the 29th, TSMC's Plant 1 located in Kikuyo, Kumamoto Prefecture, evacuated its employees outdoors immediately after the strong earthquake struck the previous day. The company stated that workers have been returning sequentially after structural safety checks of the buildings were completed.

According to Japan's Nippon TV, TSMC is conducting a detailed investigation into the impact of the strong earthquake on Plant 1 while partially suspending construction work that was underway for Plant 2.

The construction site for Plant 2 was reportedly not affected by the previous day's strong earthquake, but the suspension is a precautionary measure against the possibility of aftershocks and other risks.

TSMC's Plant 1 began operations in 2024, and TSMC aims to mass-produce advanced 3-nanometer (nm) semiconductors at Plant 2 starting in 2028.

Sony Semiconductor Manufacturing, which produces image sensors and other components within the Sony Group, suspended operations at its core production base, the Kumamoto Technology Center, built near TSMC's Kumamoto plant, immediately after the strong earthquake and is currently assessing the extent of the earthquake damage, the Sankei Shimbun reported.

The Sony Kumamoto Technology Center was originally producing image sensors and other items around the clock.

The timing for the resumption of future operations has not yet been determined, according to reports.

Major semiconductor manufacturing equipment maker Tokyo Electron halted operations at its two plants within Kumamoto Prefecture, and Mitsubishi Electric announced on the 29th that it has also suspended production at its power semiconductor plants in Koshi and Kikuchi, Kumamoto Prefecture.

Additionally, Renesas Electronics, an automotive microcontroller (MCU) manufacturer that experienced water leakage during the 2016 strong earthquake, has also initiated inspections at its Kawashiri plant.

The Yomiuri Shimbun pointed out that if semiconductor-related plants remain concentrated in Kumamoto Prefecture and production halts caused by the strong earthquake persist, there is a possibility that it could impact the manufacturing of a wide range of products utilizing semiconductors, such as electronic devices and automobiles.

A large number of automobile-related industries are also located in this region, raising concerns over related damages.

Toyota Motor, the world's largest automaker, announced on the 29th that it will re-suspend operations at three plants located in Fukuoka Prefecture near Kumamoto Prefecture until late on the 31st.

Toyota had halted operations at these plants immediately after the strong earthquake occurred the previous day and resumed them on the morning of the same day, but decided to suspend them again considering safety inspections and logistics conditions.

Aisin Kyushu, a Toyota Motor group auto parts affiliate, has also temporarily suspended operations.

Honda announced its policy to suspend operations at its Kumamoto factory located in Ozu, Kumamoto Prefecture, which produces motorcycles and other items, through the 31st.

Nippon Paper Industries is focusing on grasping the exact scale of damage at its plant located in Yatsushiro, Kumamoto Prefecture, where significant damage occurred, including a broken smokestack.

Operations also remained suspended at the Kumamoto District plant of Mitsubishi Chemical Corporation's Kyushu business office (in Uto), the Bridgestone Kumamoto plant (in Tamana), and confectionery maker Koike-Ya's Kyushu Aso plant (in Mashiki).

Hits to logistics and distribution networks followed as well.

Japan Post suspended counter services at post offices within Kumamoto Prefecture all at once.

Yamato Transport halted the acceptance of cargo sent from or arriving in Kumamoto Prefecture, and Sagawa Express also withheld collection and delivery operations in some areas.
 
(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.