TSMC Held Up, but Kumamoto Quake Puts Semiconductor Supply Chain on Alert

[Financial News, Tokyo = Correspondent Seo Hye-jin] A magnitude 7.1 earthquake that hit Kumamoto Prefecture in western Kyushu on the 28th is shaking Japan's manufacturing supply chains, including semiconductors and automobiles. TSMC, the world's largest foundry company, resumed normal operations at its Japanese plant without major damage, but major companies such as Tokyo Electron and Honda suspended production and began safety inspections. A chimney collapse at a paper mill also caused casualties.
According to Nikkei, Inc. and Yomiuri Shimbun on the 29th, JASM, TSMC's Japanese production unit, evacuated all employees outdoors immediately after the quake at its Kikuyo Town plant in Kumamoto, then confirmed the structural safety of the facility. Employees were later allowed to return in stages, and no serious damage to the building or production equipment has been found so far.
Tokyo Electron, a Japanese semiconductor equipment maker, suspended operations for the day at its facilities in Kōshi City and Ōzu Town in Kumamoto Prefecture and is carrying out safety inspections. No major facility damage has been confirmed so far.
Mitsubishi Electric Corporation is checking for damage at its power semiconductor plants in Kōshi City and Kikuchi City, while Sony Group's semiconductor production base and Renesas Electronics' plants in Kumamoto City and Nishiki Town are also being inspected for equipment damage and production disruptions.
In the semiconductor industry, there are concerns that if production disruptions drag on, the impact could spread to a wide range of sectors, including automobiles and electronics. Kumamoto Prefecture is home to a concentration of semiconductor manufacturers as well as materials and equipment suppliers centered on TSMC, making it a key hub in Japan's strategically promoted "Silicon Island."
The auto industry also saw a series of production disruptions.
Honda suspended operations at its Kumamoto Works, which produces motorcycles and other products, until the evening of the same day. The move followed water leaks and flooding at some plants caused by sprinklers that activated automatically during the quake. The company said no major facility damage has been confirmed so far.
Auto parts maker Astemo halted operations at a subsidiary plant in Uki City. Several employees were injured and taken to hospital, and aftershocks continue to make even internal safety checks at the plant difficult. The timing for resuming production remains undecided.
Toyota Motor temporarily suspended operations at three plants in Fukuoka Prefecture and plans to restart them from today. Daihatsu also stopped night-shift production at its Oita and Fukuoka plants and inspected equipment. Bridgestone likewise temporarily halted production at its Kumamoto plant and plans to resume after safety checks. Yamaha Motor suspended production at its Yatsushiro Plant through the day after liquefaction damage was confirmed.
Casualties were also reported at industrial facilities. At Nippon Paper Industries' Yatsushiro Plant, a chimney collapsed, trapping 11 workers. Two of them were rescued but are in cardiac arrest, while the fate of the remaining nine has not yet been confirmed.
After confirming employee safety, the company plans to begin inspecting the equipment. The plant is a production base that makes about 300,000 tons of printing paper and newsprint a year.
The food and beverage industries also stopped production. Koikeya suspended operations at its Kyushu Aso Plant, while Mercian, a Kirin Holdings affiliate, temporarily halted production of shochu and other distilled spirits at its Yatsushiro Plant.
Logistics and distribution networks are also being disrupted. Japan Post has stopped accepting Yu-Pack parcels across Kumamoto Prefecture, while Yamato Transport and Sagawa Express have also suspended pickups and deliveries throughout the prefecture. Some stores of convenience chains such as 7-Eleven, Lawson, and FamilyMart, as well as restaurant operators including Sukiya, Hama-sushi, and Kura Sushi, have temporarily closed due to power outages and facility damage.
Industry observers say further equipment inspections and production disruptions should be closely monitored for now, as aftershocks continue. The Yomiuri Shimbun said, "Given Kumamoto's concentration of semiconductor and auto parts makers, if production stoppages are prolonged, the impact could spread across the broader electronics and automotive supply chains."

[email protected] Seo Hye-jin Reporter