On July 28, a magnitude 7.1 earthquake struck Kumamoto Prefecture, prompting local manufacturers to halt operations and assess damage. Kumamoto is home to major semiconductor production facilities, including Taiwan's TSMC, Sony, Renesas Electronics, and Tokyo Electron, raising concerns about disruptions in Japan's semiconductor supply chain.
According to the Nikkei, a seismic intensity of 5+ was recorded in Kikuyo, where TSMC's factory is located. This level of shaking can cause damage to some buildings and knock over unsecured furniture. Asahi Shimbun reported that TSMC evacuated employees after reaching the evacuation threshold. After confirming all staff were safe, the company began safety inspections of the factory and is gradually allowing employees to return while assessing any damage to production facilities.
TSMC is reportedly working to gradually resume operations at its Kumamoto plant, which had been temporarily halted due to the earthquake. Although structural safety has been confirmed, detailed evaluations of the impact on production equipment are ongoing. Construction of the second plant has not shown direct damage, but some work has been suspended due to the possibility of aftershocks.
The Kumamoto plant is TSMC's first production site in Japan, operated by its subsidiary JASM. The first plant, which produces logic semiconductors used in automobiles, began mass production in December 2024, while the second plant is scheduled to start production in 2028. Nikkei Asia reported that the Kumamoto earthquake is causing disruptions to TSMC and Toyota's production in southern Japan.
Additionally, other local semiconductor companies have also halted operations. Sony Group stopped operations at its image sensor factory in Kikuyo immediately after the earthquake to assess damage to buildings and production equipment. The second plant in Koshigaya, which was preparing to start operations, has been confirmed to have no issues with its building or equipment. Both plants reported no injuries, but the timeline for resuming production at the Kikuyo plant remains uncertain.
Renesas Electronics has also suspended operations at its Kawashiri and Nishikimachi plants, which produce automotive semiconductors, since July 28. Damage such as wall cracks, leaks, and fallen ceiling panels have been identified, and investigations into production equipment and products are underway. The clean rooms necessary for semiconductor production remain intact, and there have been no reported injuries.
Tokyo Electron reported no significant damage to its buildings or equipment but halted operations at its Koshigaya and Ozuma plants on July 29 for safety inspections. TOPPAN Holdings also suspended operations at its semiconductor and packaging plant in Tamana, with no timeline for resumption. Mitsubishi Electric has stopped operations at its power semiconductor plants in Kikuchi and Koshigaya for safety checks.
The earthquake's impact extends beyond the semiconductor industry. According to NHK, Honda has decided to suspend operations at its Kumamoto plant, which manufactures motorcycles, until July 31 to assess damage to equipment and supply sources.
Toyota Motor Corporation temporarily halted operations at its Fukuoka-based Miyata, Kanda, and Kokura plants on July 28 but resumed them the following morning. However, production was again suspended from the evening of July 29 until July 31 to assess damage to supply sources and inspect equipment.
The most significant human toll among manufacturing facilities has been reported at Japan Pulp and Paper's Yatsushiro plant. Asahi Shimbun reported that part of a chimney collapsed, trapping 11 employees inside. Four have been rescued, while two are in cardiac arrest. The plant, which produces approximately 300,000 tons of printing and newsprint annually, has completely halted operations.
Meanwhile, there have also been casualties in the retail sector. Just before 6 p.m. on July 28, part of the second floor of Aeon Mall Kumamoto collapsed due to an explosion. The Kumamoto Disaster Response Headquarters reported three fatalities and five injuries, with additional individuals unaccounted for. Asahi Shimbun cited a senior government official suggesting a possible LP gas leak from the building's facilities. Police, firefighters, and the Self-Defense Forces continue search efforts.
The Japan Meteorological Agency has warned of strong tremors, potentially reaching a magnitude of 7, over the next week, particularly in the next two to three days. Logistics disruptions are also spreading, with Yamato Transport halting collection and delivery across Kumamoto Prefecture, and Sagawa Express suspending services in Kumamoto City and Yatsushiro City. Japan Post has also stopped parcel acceptance to and from Kumamoto Prefecture.
In April 2016, following the Kumamoto earthquake, the Japanese Cabinet Office estimated damage to factories and infrastructure at approximately 2.4 trillion to 4.6 trillion yen (about $21.3 billion to $40.7 billion), with production losses in the region estimated at 90 billion to 127 billion yen over 34 days. This time, damage to production facilities, along with aftershocks and transportation disruptions, is expected to significantly impact the scale of industrial losses.
Meanwhile, Japanese Prime Minister Sanae Takaichi announced that the death toll from the earthquake has risen to 13 as of the morning of July 29.
* This article has been translated by AI.
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