Japan earthquake disrupts chip industry, many semiconductor companies suspend operations for inspection
Japan's earthquake disrupted the chip industry, forcing local chip and electronics companies to temporarily halt operations. TrendForce, a third-party research organization, believes that the semiconductor industry is currently in a downturn and off-season, coupled with existing parts inventory and most factories are located in areas with earthquake intensity of 4 to 5, the impact of the earthquake is expected to be controllable.
The earthquake in Japan disrupted the operations of the chip industry, and many semiconductor companies suspended operations for inspections.
On the afternoon of January 1, local time, a magnitude 7.6 earthquake occurred on the Noto Peninsula in Ishikawa Prefecture, Japan. So far, the Noto Peninsula earthquake has killed 81 people in Ishikawa Prefecture and 51 others are still unknown. According to technology media The Register, the earthquake forced local chip and electronics companies to temporarily suspend operations. Affected companies include Toshiba, Taiwanese silicon wafer manufacturer Global Wafers, and multilayer ceramic capacitor (MLCC) manufacturing Murata Manufacturing, etc.
According to a survey by TrendForce, a third-party research organization, multilayer ceramic capacitor manufacturer Taiyo Yuden, Japanese silicon wafer manufacturer Shin-Etsu, Toshiba and TPSCo are among the wafer fabs. Critical semiconductor-related facilities are also located in the affected areas.
In terms of semiconductor equipment, Japanese semiconductor equipment manufacturer Kokusai Electric is investigating the damage. On January 4, Keyi Semiconductor issued a statement that the Toyama Technology Manufacturing Center located in Toyama Prefecture, which is the core of Keyi Semiconductor's manufacturing and development, was not seriously damaged, but the ceilings, wall materials, and air-conditioning ducts of some facilities were partially damaged. Therefore, It is necessary to carry out safety inspections, cleaning, and maintenance, and it is planned to gradually operate normally starting from January 9. "For damage across the supply chain, we will work with our partner companies to minimize the impact."
In terms of silicon wafer production, Shin-Etsu and Global Wafer's factories in Niigata, Japan, had previously suspended operations for inspection. The crystal growth process in raw wafer manufacturing is particularly sensitive to seismic activity, but most of Shin-Etsu's crystal growth business is mainly in the Fukushima area, so the impact of this earthquake is limited. Global Wafer said on Wednesday that two of its five factories in Japan are located in earthquake-stricken areas. The company said that after a brief partial shutdown on January 1 and 2, production has fully resumed without any damage.
In semiconductor production, Toshiba said on Tuesday that a key production center for power semiconductors operated by its subsidiary Kaga Toshiba Electronics in southwestern Ishikawa Prefecture has stopped operations while infrastructure is inspected for damage. Once the assessment of the production line is complete, a decision will be made on when to resume production. In addition, three of TPSCo's factories were closed for inspection.
Two Japanese manufacturing plants of Israeli semiconductor foundry Tower Semiconductor are in neighboring prefectures of Ishikawa. Tower Semiconductor said the building was not affected or damaged, while the facility sustained only minor damage with no impact on operations. “We are recertifying the tools while working to effectively repair any damage to fab tools and in-line materials and utilizing all available resources to minimize any potential disruption to manufacturing and customer service.”
According to The Register, Murata Manufacturing Co., the world's largest manufacturer of multilayer ceramic capacitors, is also assessing damage to facilities at two locations near the epicenter. According to TrendForce news, Murata (only the MLCC factory) experienced an earthquake intensity below magnitude 4 without being significantly affected. However, Murata's other factories that do not produce MLCC are located in areas with earthquake intensity above 5 and were closed during the New Year holiday while staff assessed the damage.
Taiyo Yuden's new factory in Niigata is designed to withstand magnitude 7 earthquake activity without equipment damage.
TrendForce believes that considering the current downturn and off-season of the semiconductor industry, coupled with the existing parts inventory, and the fact that most factories are located in areas with earthquake intensity of 4 to 5, preliminary investigations indicate that the equipment has not been significantly damaged, and the impact of the earthquake is expected to be control.