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Japanese Earthquake Cripples Manufacturing
April 8, 2022 – On March 16th, a 7.4 magnitude earthquake struck off the northeast coast of Japan in Fukushima, leaving thousands without power. This deadly earthquake caused over 225 casualties and halted major business and infrastructure systems such as railroad transportation and manufacturing plants.
The impact of this earthquake, the largest since the 9.1 magnitude “Great East Japan Earthquake”, has been far and wide. Fukushima is a major manufacturing hub for the global electronics industry, producing parts for the automotive industry, smartphones, computers, memory, and more. Many of the factories in this region suspended their activities temporarily to repair damages.
Manufacturers Impacted by the Earthquake
| Businesses | Earthquake Impact |
|---|---|
| Renesas Electronics | Suspended production of three semiconductor plants at Takasaki, Yonezawa, and Naka plants. – Production of Takasaki and Yonezawa has fully resumed as of 23-March and Naka plant on 26-March with some losses due to ruined work-in-process and reduced production account for approximately 2-3 weeks’ worth of production. |
| Murata Manufacturing | Halted operations at Tome, Sendai, Koriyama, Motomiya, and Tohoku factories. |
| Sony | Halted production at two factories in Miyagi prefecture and the third factory in Yamagata prefecture. The facilities produce storage media, laser diodes, and image sensors. |
| Toyota | Toyota Iwate and Miyagi plants halted for part of Thursday 17-March. |
| Nissan | Halted production at its factory in the city of Iwaki in Fukushima. |
| Kioxia | Halted production at the new 3D NAND flash fab in Kitakami. |
| Meiko Electronics Co., Ltd. | Halted production at its 3 factories in Northeast Japan in Fukushima, Yamagata, and Ishinomaki. |
| SMC Corporation | Had some damage at Tsukuba, Yamatsuri, and Tono factories. |
| Shin-Etsu | Shin-Etsu Chemical and some of the Shin-Etsu Group Companies’ plants suspended operations. |
| Japan Semiconductor Co., Ltd | Halted operations at its factories -Resumed partial production on 17-March and returned to full-scale production on 22-March |
| Eneos Corp | Shut its Sendai refinery including the 145,000 barrel-per-day crude distillation unit (CDU). |
ADAPT AND OVERCOME SUPPLY CHAIN DISRUPTIONS
As we expect this earthquake to disrupt the inventory, lead times, and even pricing of components coming out of Fukushima, manufacturers and OEMs may need to find alternative sources to meet demand.
SiliconExpert’s Supply Chain Module is designed to help in these situations. We closely monitor situations that have the potential to impact the global economy and provide you alternatives to keep your supply chain intact. SiliconExpert monitors manufacturers and businesses that produce the parts and components in your BOM to help you assess risk and find alternatives.
Learn more about how SiliconExpert’s Supply Chain module can help keep your business on track!
References:
- https://www.reuters.com/world/asia-pacific/japan-assesses-damage-morning-after-powerful-quake-2022-03-16/
- https://www.ft.com/content/2f6feb23-d0a4-46e3-853e-3fc8de2136f3
- https://www.renesas.com/us/en/about/press-room/impact-march-16-earthquake-coast-fukushima-prefecture-renesas-operation-0
- https://www.bloomberg.com/news/articles/2022-03-17/toyota-and-nissan-halt-plants-in-north-japan-after-earthquake
- https://www.digitimes.com/news/a20220318PD214.html
- https://www.shinetsu.co.jp/en/news/others/regarding-the-effects-of-the-earthquake-that-occurred-on-march-16-in-northeastern-japan/
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