"Ten Years Later, Another Massive Quake Halts TSMC and Toyota in Kumamoto: What Happens Now? [Mwonilissyu]"

Semiconductor and Automobile Plants Halt Operations
Facility Malfunctions and Cracks Found in Factory Walls
Port Used for Raw Material Imports Suffers Ground Subsidence
Japanese Media Warns of Potential Long-term Impact

On July 28, a magnitude 7.1 earthquake struck Kumamoto Prefecture, Japan, causing extensive damage throughout the region. Dozens of casualties resulted from building collapses and fires, and key infrastructure such as transportation and healthcare was paralyzed. Following concerns over the loss of life, fears are growing regarding the economic impact. Kumamoto is a hub for manufacturing, including semiconductor and automobile factories. With several factories halting operations and port recovery expected to take time, particularly those vital for raw material and component imports, there are growing concerns that supply chain disruptions within Japan may be prolonged.

Currently, many manufacturing plants have suspended operations. According to the Nihon Keizai Shimbun (Nikkei), Sony Semiconductor Solutions, under Sony Group, has shut down its image sensor factory in Kikuyo, Kumamoto Prefecture. It reportedly took three months for all manufacturing processes to resume after the Kumamoto earthquake ten years ago.

Renesas Electronics, a major producer of automotive semiconductors, stopped lines at its Kawashiri and Nishiki factories in Kumamoto City as well. Although cracks in factory walls have been identified, the clean room environment is reportedly being maintained for now. Notably, after the 2016 earthquake, shipments were suspended for an extended period due to damage to the clean rooms at these sites.

A partial collapse of a large shopping mall following a magnitude 7.1 earthquake that struck western Kyushu, Kumamoto, Japan, on the 28th. Photo by Yonhap News.

The world’s largest foundry company, TSMC, also reported disruptions to its production. TSMC stated that when the earthquake struck, all workers were evacuated, and after confirming there were no safety concerns, employees would return to the plant in phases. However, the company noted that checks on building safety and equipment are still underway and that further time is needed for equipment adjustments.

Semiconductor plants generally go through hundreds of steps to produce a single product, requiring intricate circuit manufacturing. The standard process from wafer input to shipment takes about three months, and even a minor defect during production results in disposal. Given these sensitive procedures, it is understandable that the community is anxious about the impact of the earthquake on these plants. Fortunately, based on experiences of previous quakes that delayed production, semiconductor plants in Kumamoto Prefecture have already been enhancing earthquake resistance and stockpiling inventory.

Following the semiconductor sector, automobile factories have also temporarily halted production. Toyota Motor Corporation announced it would halt operations at three factories in Fukuoka Prefecture until July 31. Aisin, an automotive parts supplier of the Toyota Group, was also affected, with some facilities damaged by the earthquake. The timing for resuming production has not yet been determined. This is a significant concern for Toyota, as when Aisin stopped its plants after the 2016 Kumamoto earthquake, temporary suspension of 90% of Toyota’s assembly lines resulted.

Additionally, Suntory Holdings’ Kumamoto factory, which produces beer and beverages, entered a shutdown. According to Nikkei, Suntory stated that the resumption period remains undecided, and for now, production would be shifted to other locations. During the earthquake ten years ago, it reportedly took a year and a half to normalize shipments from this facility.

A road cracked in Uki City, Kumamoto due to the strong earthquake that occurred on the 28th. Photo by Yonhap News.

Further aggravating supply chain instability is the damage to infrastructure. According to Japan’s Ministry of Land, Infrastructure, Transport and Tourism, liquefaction and ground subsidence occurred at Yatsushiro Port in Yatsushiro City. This port is the only one in southern Kyushu that handles hazardous materials such as high-pressure gases and chemicals essential for semiconductor manufacturing. The port operator reported that fractures appeared throughout the facility, that differential ground settlement is widespread, and that recovery could take longer than expected.

Beyond casualties, this earthquake has left a deep scar on the Kumamoto region’s manufacturing-driven economy. With factories for semiconductors and automobiles, as well as ports and other production infrastructure, suffering repeated damage, it appears that supply chains across Japan will be significantly affected for some time.

This content was produced with the assistance of AI translation services.