Japan earthquake disrupts semiconductor production as manufacturers suspend Kyushu operations

A 7.1-magnitude earthquake in Japan's Kumamoto Prefecture has led to major chipmakers, including TSMC, Renesas, Sony and Tokyo Electron, temporarily suspending operations to assess damage and ensure site safety

A 7.1-magnitude earthquake that struck Japan's Kumamoto Prefecture on 28 July has disrupted semiconductor manufacturing across the island of Kyushu, prompting several leading chipmakers to temporarily halt production while inspections and safety assessments are carried out.

The earthquake damaged roads, caused power outages affecting thousands of homes and disrupted regional supply chains and logistics, impacting both the semiconductor and automotive sectors.

Taiwan Semiconductor Manufacturing Company (TSMC) evacuated employees from its Japan Advanced Semiconductor Manufacturing (JASM) facility in Kumamoto immediately following the earthquake.

The company later confirmed that all personnel were safe.

In an emailed statement, TSMC said: "Post-earthquake structural inspections have been completed, confirming that the structures are safe and operations are gradually resuming. Detailed inspections and impact assessments are ongoing."

Renesas Electronics also suspended operations at two semiconductor plants in Kumamoto after the earthquake caused ceiling panels to fall, cracked walls and led to minor water leaks at the facilities.

Meanwhile, semiconductor equipment manufacturer Tokyo Electron paused operations at its Koshi and Ozu plants on 29 July to complete safety inspections, despite reporting no major damage to buildings or manufacturing equipment.

Sony similarly evacuated employees and halted production at its semiconductor manufacturing facilities in Kumamoto immediately after the earthquake.

The company said inspections had not identified significant damage at its other semiconductor sites in Nagasaki, Oita and Kagoshima prefectures.

Kyushu is one of Japan's most important semiconductor manufacturing regions, hosting major fabrication plants and suppliers that form part of the global electronics supply chain.

The disruption has renewed concerns over the sector's vulnerability to natural disasters, echoing the widespread supply chain disruption that followed Japan's 2011 Tohoku earthquake.

The earthquake has also affected automotive manufacturers with operations in the region.

The disruption follows similar precautionary cleanroom evacuations by TSMC during earthquakes in Taiwan in 2024, when production resumed after safety inspections.

Toyota has suspended production at three plants in southern Japan until 31 July as it assesses the impact on suppliers and logistics, while Honda has extended a shutdown at its Kumamoto motorcycle plant to allow repairs to earthquake-damaged sections of the factory.

Although several semiconductor manufacturers have reported only limited physical damage, inspections remain ongoing as companies work to restore production safely and assess any wider impact on semiconductor supply chains.

You may also like