Huge Kumamoto Quake Disrupts Chip Production in Kyushu

Tokyo, July 30 (Jiji Press)–A huge earthquake that struck Kumamoto Prefecture on Tuesday has forced semiconductor-related plants across the Kyushu region in southwestern Japan, a major chip production hub, to suspend operations. In response to the earthquake, companies are rushing to restore operations amid concerns that disruptions in semiconductor supplies for use in automobiles, home appliances and various other products could affect a wide range of industries. On Wednesday night, Renesas Electronics Corp. resumed production at its Nishiki plant in the town of Nishiki, one of its two facilities in Kumamoto. The plant, which was shut down immediately after the quake, primarily produces microcontrollers for automobiles. Renesas aims to resume operations at the remaining Kawashiri plant next Wednesday. The plant was also shut down after major earthquakes hit Kumamoto in 2016. At the time, it took a month to restore production at the plant to the pre-disaster levels. On Thursday, Mitsubishi Electric Corp. partially resumed operations at two factories in Kumamoto. On the same day, Ebara Corp. restarted production at a chip manufacturing equipment plant in the town of Nankan after confirming the safety of the facility. Semiconductor manufacturing equipment maker Tokyo Electron Corp. suspended operations at two plants in Kumamoto for safety checks. President and CEO Toshiki Kawai told a press conference Thursday that the company expects to restore operations early next week. Sony Group Corp. restarted operations at factories in the neighboring prefectures of Nagasaki and Oita, but its plant in the town of Kikuyo, Kumamoto, which produces image sensors for smartphones, remains shut down. Toppan Holdings Inc. has also suspended operations at its plant in the city of Tamana that produces semiconductor components. A plant in Kikuyo operated by Taiwan Semiconductor Manufacturing Co., the world’s largest chip foundry, confirmed the building’s structural safety but the company noted that it will take some time to adjust related equipment. “Chip factories have clean rooms and precision manufacturing facilities, and require precise inspections and careful restarts based on standards different from those used for ordinary buildings,” Atsushi Osanai, professor at Waseda University, said. “The focus is not so much on what has stopped but on how quickly production will be restored from now on.” Many semiconductor factories have been built in the Kyushu region since the 1960s thanks chiefly to its abundant water resources. Although the chip industry once suffered a setback due to international competition, major Japanese and foreign companies have increased investment in the region in recent years thanks partly to government support. According to the Kyushu Semiconductor and Digital Innovation Association, the region is home to more than 700 semiconductor-related business establishments. END [Copyright The Jiji Press, Ltd.]