Sony and Toyota Halt Operations... What’s Next for Manufacturing Hub Kumamoto? [What’s Happening in Japan]

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 across the region. Dozens of people were killed or injured due to building collapses and fires, and critical infrastructure such as transportation and healthcare has also been paralyzed. Beyond the loss of life, there are growing concerns about economic damage. Kumamoto is home to a high concentration of manufacturing plants for semiconductors and automobiles. Several factories have halted operations due to the earthquake, and restoration of ports required for importing raw materials and parts is expected to take time. As a result, experts warn that supply chain disruptions within Japan could be prolonged.

Currently, many manufacturing plants remain shut down. According to the Nikkei, Sony Semiconductor Solutions of the Sony Group has suspended operations at its image sensor plant in Kikuyo Town, Kumamoto Prefecture. When the Kumamoto earthquake struck a decade ago, it took three months to bring all processes fully back online.

Renesas Electronics, a manufacturer of automotive semiconductors, also stopped production lines at its Kawashiri and Nishiki-machi plants in Kumamoto City. Although cracks have been found in the factory walls, the cleanroom environment has thus far been maintained. However, after the 2016 earthquake, shipment suspensions were prolonged at this site due to cleanroom damage.

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.

TSMC, the world's largest foundry company, also reported disruptions to its production. When the earthquake hit, TSMC evacuated all employees and stated that they would gradually return staff only after confirming the facilities were safe. The company announced that, as building safety assessments and equipment inspections continue, it will take additional time to recalibrate the machinery.

Typically, semiconductor plants require hundreds of processes to produce a single chip with minute circuitry. It usually takes about three months from wafer input to product shipment, and even the slightest scratch during this process can result in the entire batch being discarded. Given such sensitive manufacturing conditions, the impact of the earthquake on these plants has become a significant concern for the local community. Fortunately, due to past experiences with prolonged production delays after major earthquakes, semiconductor factories in Kumamoto Prefecture have invested in seismic reinforcement and stockpiled inventory as a precaution.

In addition to the semiconductor sector, automobile plants have also temporarily suspended production. Toyota Motor Corporation, for example, announced that it would halt operations at its three plants in Fukuoka Prefecture until July 31. Aisin, Toyota Group’s automotive parts manufacturer, suffered damage to certain equipment as a result of the earthquake. As of now, a timeline for resuming production has not been decided. This has put Toyota in a difficult position, as during the 2016 Kumamoto earthquake, Aisin’s halt in operations forced 90% of Toyota’s final automobile assembly lines to stop temporarily.

Suntory Holdings' Kumamoto plant, which produces beer and beverages, will also shut down operations. According to the Nikkei, Suntory said the timeline for resuming operations remains undecided, and for the time being, production will be supplemented by other regional plants. After the earthquake a decade ago, it took a year and a half for shipments from this facility to return to normal.

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

Infrastructure damage is also cited as a key factor driving supply chain instability. According to Japan’s Ministry of Land, Infrastructure, Transport and Tourism, ground liquefaction and subsidence occurred at Yatsushiro Port in Yatsushiro City. This is the only facility in southern Kyushu that handles hazardous materials required for semiconductor manufacturing, such as high-pressure gases and chemicals. The port operator announced that cracks have appeared throughout the port and the presence of many sites with uneven ground levels suggests that restoration could take a considerable amount of time.

This earthquake has not only cost lives but has also dealt a serious blow to the local economy in Kumamoto, where many manufacturing industries are clustered. As semiconductor plants, automobile factories, and key ports have all suffered damage, Japan’s domestic supply chain is expected to be significantly affected for some time.

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