Why Japan earthquake may have minimal impact on chip supply chain

An investigation by TrendForce into the impact of the latest Japan earthquake has revealed that damage to many semiconductor-related facilities in the affected areas is likely to be limited.

On New Year’s Day, a devastating 7.6 magnitude earthquake shook Japan, claiming the lives of at least 55 people. Emergency services face a race against time to rescue those potentially trapped under rubble.

The quake caused a dramatic shift in the landscape, raising the land more than 4m (13ft) and moving it 130cm west.

According to the Japan Meteorological Agency, approximately 200 tremors have been detected since the initial quake. While the first tsunami warnings have now been downgraded, warnings of possible further tremors leave the nation on high alert.

An investigation by TrendForce into the impact of the latest Japan earthquake has revealed that many vital semiconductor-related facilities are located within the affected Noto region of Ishikawa Prefecture.

These include MLCC manufacturer Taiyo Yuden, silicon wafer producers Shin-Etsu and GlobalWafers, as well as fabs such as Toshiba and TPSCo.

However, the TrendForce reports added that “preliminary inspections indicate no significant damage to the machinery” which suggests that the impact is manageable.

The UK’s semiconductor strategy involves diversifying its supply chain to minimise risk, with a focus on chip design and IP

Shin-Etsu and GlobalWafers’ facilities in Niigata are currently being inspected to assess damage. The manufacturing process of raw wafer is particularly susceptible to seismic activity. However, most of Shin-Etsu’s crystal growth operations are in Fukushima, which experienced limited impact from the quake.

Toshiba’s Kaga semiconductor facility in the southwestern Ishikawa Prefecture of Japan is also among those being assessed for earthquake damage. The site includes a six-inch and an eight-inch manufacturing plant, along with a twelve-inch semiconductor producing facility due to be completed in the first half of 2024, TrendForce added.

The investigation detailed that Taiyo Yuden’s new Niigata plant, designed to withstand seismic activity up to a magnitude of 7, “reported no equipment damage”. It continues “Murata (MLCC fabs only) and TDK’s MLCC plants experienced seismic intensities below level 4 and were not notably affected”.

Murata’s other factories in Komatsu, Kanazawa, and Toyoma were closed for the New Year holiday, and are also currently undergoing damage assessment.

Japan accounts for about 20% of the world’s earthquakes of magnitude six or greater and experiences up to 2,000 quakes that people can feel annually. A history of deadly earthquakes has informed the country’s response to such events.

The last earthquake to affect the country in March 2022, which registered a magnitude of 7.3, led to shutdowns at manufacturing plants, including those used by chip and component makers including Fujitsu, Murata, Renesas and Kioxia.

However, since a devastating earthquake in 1995, Japan has made significant strides in retrofitting its infrastructure to prepare for earthquakes, which could account for damage not being worse given the situation.

Investment in drones for natural disasters, for example, is proving invaluable. Faster than helicopters and capable of low-altitude operation, these drones revolutionise disaster response. Crucially, the ability of these drones to access hazardous areas could help prevent secondary disasters, underlining their importance in Japan earthquake disaster management strategy.

The latest earthquake also comes at a sensitive time for the country’s nuclear industry. The industry has faced pushback since the 2011 Fukushima disaster, and the public have been divided over whether to restart nuclear plants.

Elsewhere, in support, Tesla Japan offers free charging from their charging points in the affected areas: “Superchargers located in the Hokuriku area, which were damaged by the Noto Peninsula Earthquake that occurred on January 1st of this year, will be open for free for one week starting tonight,” it announced.

テスラ スーパーチャージャーを無償化

本年1月1日に発生した能登半島地震によって被害を受けた北陸エリア所在のスーパーチャージャーを今晩より1週間無償開放します。身の回りの安全を十分確保の上ご利用ください。
詳細については以下のとおりです。

対象範囲… pic.twitter.com/8zfGhorJei

— Tesla Japan (@teslajapan) January 2, 2024

To see what the tech industry experts predict for this year, watch this bonus episode of TI:TALKS.