Japan Earthquake Market Insights - Flipbook - Page 2
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January 2024 Earthquake in Japan: Impact on Semiconductor
Industry and Manufacturing
Summary
Several recent reports highlight the aftermath of a powerful 7.6 magnitude earthquake in Ishikawa Perfecture,
Japan, particularly its impact on the semiconductor industry and related manufacturing. Major semiconductor
facilities, including those of Toshiba, Murata Manufacturing, and others, experienced temporary closures and
disruptions. While the human toll is acknowledged, experts suggest that the industry's current conditions, along
with Japan's proactive infrastructure measures, have contributed to minimizing the overall impact on
semiconductor manufacturing plants. Companies are racing to resume production, and initial assessments
indicate manageable damage.
Key Updates
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The earthquake led to temporary closures and disruptions in semiconductor-related facilities, including
major players like Toshiba, Murata Manufacturing, and others.
The recent 7.6 magnitude earthquake in Japan has led to temporary closures of chip and electronics
companies in Ishikawa Prefecture, including Toshiba, GlobalWafers, and Murata.
While the semiconductor industry may experience a limited immediate impact with manufacturing
facilities halting production, the destruction is expected to drive demand for construction materials,
leading to potential shortages and increased prices. Additionally, property reinsurance costs globally are
likely to rise, though the logistics industry is expected to face localized disruptions.
Temporary shutdowns of key semiconductor-related facilities, including MLCC manufacturer TAIYO
YUDEN, silicon wafer producers Shin-Etsu and GlobalWafers, as well as Toshiba and TPSCo. Preliminary
inspections suggest manageable impact due to the seismic-resistant infrastructure, off-peak industry
season, and existing component inventories, with most facilities situated within seismic intensity levels
that align with structural tolerances.
TrendForce's investigation reveals limited damage to semiconductor-related facilities, providing
reassurance to the global supply chain.
The earthquake's effects on manufacturing are expected to have lasting consequences on supply
chains, with companies working to overcome disruptions and assess damages. The need for careful
evaluation and monitoring remains crucial for a gradual recovery in the affected regions.
Tower Semiconductor provides an update, confirming the safety of employees and expressing
commitment to operational safety, stability, and minimal disruptions.
In the aftermath of a magnitude 7.6 earthquake on Japan's west coast, manufacturers, including major
players like Toyota and Murata Manufacturing, scramble to resume production amid infrastructure
disruptions, with 80% of affected companies planning or already restarting operations.
While there are challenges and ongoing assessments, the overall impact on the semiconductor sector
appears limited, considering current industry conditions and geographical distribution.
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