Latest Impacts of Japan’s Earthquake: Summary + List of Over 100 Local Semiconductor Industry Enterprises

01 Current Earthquake Situation & Compilation of Corporate Responses

Let us first talk about the earthquake itself. According to an official announcement by the Japan Meteorological Agency (JMA), the earthquake registered a magnitude of 7.1 on the Richter scale and reached Level 7, the maximum grade on Japan’s seismic intensity scale. It had a focal depth of 10 kilometres, followed by a string of aftershocks peaking at magnitude 4.5. A tsunami warning was also issued, with projected wave heights of up to one metre.

The Japanese government activated emergency earthquake alerts for Kumamoto, Nagasaki, Kagoshima, Fukuoka, Saga, Ōita and Miyazaki Prefectures across southern Kyushu. Immediately after the quake, tens of thousands of local households suffered power outages. JR Kyushu suspended services on the Kyushu Shinkansen and multiple conventional railway lines temporarily. Partial rail services have been gradually resumed following safety inspections, yet disruptions to transportation persist.

The Japan Meteorological Agency issued a special advisory. Drawing lessons from the 2016 Kumamoto earthquakes, authorities warned that comparable large aftershocks may strike within the coming week, particularly in the next two to three days, and residents should stay vigilant.

Summary of Latest Responses from Chip-Related Companies:

TSMC (JASM Kumamoto Factory): Employees are gradually returning to the factory; damage assessment is underway.

TSMC's Kumamoto factory (Kikuyo Town, Kumamoto Prefecture) recorded a maximum seismic intensity of 5+ (on the Japanese scale). On July 28, the company stated that employees had been temporarily evacuated outdoors, and all evacuated personnel have been confirmed safe. As of 10:00 PM on the 28th, building safety has been confirmed, and employees are gradually returning to the factory. Inspections and confirmation of the earthquake's impact are ongoing. The second plant, currently under construction, was not affected by the earthquake; however, some construction work has been suspended due to the possibility of aftershocks.

Background on TSMC's JASM Factory:

JASM is TSMC's joint venture subsidiary in Japan. Its major shareholders include TSMC (approx. 86.5% stake), Sony (approx. 6%), DENSO (approx. 5.5%), and Toyota (approx. 2%). Kumamoto Plant 1 primarily produces automotive chips using mature process nodes of 28/22nm and 16/12nm. Its current monthly production capacity is approximately 20,000 12-inch wafers, accounting for about 2.6% of TSMC's total capacity. The long-term planned full-production capacity is 55,000 wafers per month.

2. Sony: Multiple Factories Suspended Operations

Immediately after the earthquake struck on the 28th, Sony Semiconductor Solutions Corporation, a subsidiary of the Sony Group, halted operations at its image sensor plant in Kikuyo Town, Kumamoto Prefecture. The company is currently inspecting its premises and production equipment to check for damage.

Its second plant in Koshi City, which has been completed but not yet launched into mass production, was confirmed to have sustained no damage to buildings or machinery. No staff on duty at both facilities during the earthquake were injured or killed.

Other Sony manufacturing sites across Kyushu in Nagasaki, Ōita and Kagoshima Prefectures also paused production temporarily. Having verified that no damage was incurred to buildings and equipment, these plants are now making preparations to resume operation step by step.

Media reports note that Sony carried out multiple rounds of seismic reinforcement upgrades to its Kumamoto campus following the 2016 Kumamoto earthquakes, which explains why there have been no recorded casualties or structural damage so far. It took Sony several months to fully restore full-capacity production at its Kumamoto factories after the 2016 disaster. In response, the company set an improvement target: to resume production within two months if an earthquake of the same scale strikes again. To cushion supply disruptions, Sony also maintains roughly two months of finished goods inventory in circulation as a buffer stock.

3. Tokyo Electron (TEL): Full-Day Suspension on July 29 for Safety Inspections

Tokyo Electron is one of the world’s leading suppliers of semiconductor front-end wafer fabrication equipment. It operates factories in Koshi City and Otsu Town, manufacturing coater/developer systems, wafer cleaning equipment, as well as 3D advanced packaging gear.

The company announced on July 28 that no major damage had been sustained to buildings and equipment at both sites. Nonetheless, to fully secure operational safety, the two plants would shut down entirely on July 29 to carry out comprehensive safety checks. The official resumption schedule will be announced separately at a later date

4. Fujifilm: All Staff Evacuated from Its Semiconductor Materials Base in Kikuyo Town

Fujifilm runs a production site in Kikuyo Town dedicated to display and semiconductor materials manufacturing. All employees at the facility were fully evacuated after the earthquake.

As of the evening of July 28, the company stated that no damage to the factory premises or personnel injuries had been confirmed so far.

5. Renesas Electronics: Two Factories Shut Down, Resumption Date Undecided

On July 29, Renesas Electronics announced that its Kawashiri Factory in Kumamoto City (Kumamoto Prefecture), which manufactures automotive chips, and the Nishiki Factory in Nishiki Town, Kuma District, suspended operations immediately following the earthquake, with no timetable set for production resumption.

The company is currently investigating the earthquake’s impact on production equipment and work-in-progress (WIP) wafers at both facilities.

Renesas disclosed partial damage details as follows:

At the Nishiki Factory, sections of ceiling panels fell off and cracks appeared on walls. Nevertheless, air conditioning systems, power supply utilities and other infrastructure remained intact, and the cleanroom environment has been maintained normally.

The Kawashiri Factory suffered wall cracks and partial water leakage. The supply of ultrapure water (UPW) has been temporarily cut off. Still, its air conditioning and power equipment are functioning properly, and the cleanroom conditions stay stable.

6. Mitsubishi Electric: Two Factories Suspended Production

Mitsubishi Electric has halted operations at its two semiconductor plants located in Kikuchi City and Koshi City, Kumamoto Prefecture. Both facilities manufacture power semiconductors for power control applications.

No damage to buildings or production equipment has been detected to date, yet staff are continuing to conduct comprehensive safety inspections. No personnel injuries or fatalities have been confirmed.

By contrast, its assembly plants for power semiconductors in Nagasaki and Fukuoka Prefectures have been verified safe and have resumed production.

7. TOPPAN Holdings: Semiconductor & Packaging Plants Shut Down

TOPPAN Holdings suspended operations at its semiconductor and packaging factory in Tamana City. The company stated that it was unclear whether production could resume the same day.

Within the semiconductor industrial chain, TOPPAN mainly engages in photomasks as well as advanced packaging substrates and related products.

8. EBARA Corporation: Plant Operations Suspended

EBARA Corporation announced on the 29th that it had suspended operations at its semiconductor manufacturing equipment plant in Nankan Town, Kumamoto Prefecture.

As one of the world’s leading suppliers of CMP equipment, EBARA holds a pivotal position in the front-end semiconductor equipment market.

9. Panasonic Industry: No Damage Recorded at Its Electronic Components Site in Mizumizu Town

Panasonic Industry runs an electronic components manufacturing base in Mizumizu Town, Tamana District, Kumamoto Prefecture, focusing primarily on capacitor production.

As of 6:30 p.m. on July 28, no casualties or damage to the facility had been reported.

10. Tokai Carbon: Production Lines Shut Down at Tanoura Plant, Ashikita Town

Tokai Carbon shut down all production lines at its Tanoura Plant in Ashikita Town.

The facility specializes in carbon materials for semiconductor fabrication, as well as consumables required for silicon wafer (semiconductor substrate) manufacturing processes.

02 Which companies are in the Kumamoto semiconductor industry chain?

Apart from the companies mentioned above, Kumamoto is home to a large cluster of semiconductor-related enterprises. Though many of these firms may be unfamiliar to you, collectively they form a fully integrated semiconductor industrial chain.

According to the List of Enterprises by Semiconductor Manufacturing Process in Kumamoto Prefecture officially released by the Kumamoto Prefectural Government, more than 100 semiconductor-related companies have settled in the prefecture. The entire industrial scope is fully covered, ranging from IC design, wafer fabrication, packaging and testing, to semiconductor materials, production equipment, tooling, and maintenance services.

Below is a categorized breakdown based on five segments specified in the official document: Manufacturing, Materials, Equipment, Tooling and Maintenance.

Manufacturing Segment

Kyushu Electronics Corporation, LSI System Center

Jedat Inc.

Meistier Co., Ltd.

Maviss Design Inc.

Privatech Inc.

Sony Semiconductor Manufacturing Corporation (CMOS Image Sensors)

Renesas Semiconductor Manufacturing Co., Ltd. (Microcontroller Units / MCUs)

Mitsubishi Electric Corporation (Power Semiconductors)

Japan Advanced Semiconductor Manufacturing (JASM) (Logic Semiconductors)

Tera Probe, Inc. (Wafer Probing & Testing)

MEPC Corporation (Wafer Processing and Testing)

Renesas Electronics Corporation

Amkor Technology Japan Co., Ltd.

Otsu Electronics Co., Ltd.

Kyushu Nissei Electric Co., Ltd.

Chuo Denshi Kogyo Co., Ltd.

Noda Electronics Co., Ltd.

Restar Inc.

Materials Segment

Tokai Carbon Co., Ltd. (Fine Carbon Materials)

Tokyo Ohka Kogyo Co., Ltd. (Photoresists & Developer Solutions)

AIR WATER INC. (Industrial Specialty Gases)

JNC Corporation (Solvents for Liquid Crystal Applications)

Mitsubishi Chemical Corporation (Precision Wafer Cleaning Chemicals)

JCU Corporation (Surface Treatment Chemicals)

Fujifilm Kyushu (CMP Slurries, Color Filters)

Tachibana Chemical Co., Ltd. (Contract Manufacturing of Chemical Products)

Air Liquide Japan Ltd. (Industrial Gases)

Mitsui High-tec Inc. (Lead Frames)

Toppan Electronics Products Co., Ltd. (Lead Frames)

Nissei Electronics Co., Ltd. (Lead Frames)

Hirai Precision Industry Co., Ltd. (Lead Frames)

Equipment Segment

Ebara Corporation (CMP Equipment, Bevel Polishing Equipment)

Tokyo Electron Kyushu Limited (Coater/Developer/Surface Treatment Systems, Wafer Bonding & Debonding Systems)

Kankon Environmental Equipment Co., Ltd. (Atmospheric Environment Preservation Equipment)

Shinwa Controls Co., Ltd. (Temperature Controllers)

Hokuetsu Corporation (Exhaust Gas Detoxification Equipment)

Sanko Kyushu TEC Co., Ltd. (Diagnostic Instruments for Automatic Control Equipment)

Horiba STEC Co., Ltd. (Gas Mass Flow Controllers)

Choubisai Giken Co., Ltd. (Polishing Equipment)

THREEDYNE Corporation (Wafer Cleaning Equipment)

Seibu Co., Ltd. (Cleaning Equipment)

Newings Corporation (Cleaning Equipment)

INTER ACTION Co., Ltd. (Light Source Equipment)

Applied Motor Co., Ltd. (Measuring Instruments)

Teradyne Japan Corporation (Automatic Test Equipment / ATE)

Arao Corporation (Automation Equipment)

Techno-D Co., Ltd. (Automation Equipment)

NTF Corporation (Automation Equipment)

Terra System Corporation (Automation Equipment)

Kumamoto IDM Corporation (Automation Equipment)

Hirata Corporation (Wafer Transfer Robots)

Sakurai Seigi Co., Ltd. (Automation Equipment)

PCT Corporation (Automated Handling Equipment)

Sanwa-Hitech Co., Ltd. (Automation Equipment)

PRECEED Corporation (Automation Equipment)

CIT Co., Ltd. (Labor-saving Equipment)

RORZE Corporation (Wafer Transportation Systems)

Synergy System Co., Ltd. (Automation Equipment)

AISIN Kyushu Co., Ltd. (Equipment Manufacturing)

evolut Corporation (Equipment Manufacturing)

NAS Corporation (Equipment Manufacturing)

Kumasan Medix Corporation (Equipment Manufacturing)

techno-creative Corporation (Equipment Manufacturing)

Yamakiyo Kogyo Kyushu Co., Ltd. (Equipment Manufacturing)

Yoshino Denshi Kogyo Co., Ltd. (Equipment Manufacturing)

SPANDNIX Corporation (IC Inspection Equipment)

TOP Co., Ltd. (Inspection Devices)

YAC Mechatronics Co., Ltd. (Processing Program Development)

Tooling Segment (Fixtures & Tooling Parts)

Shin-Etsu Quartz Co., Ltd. (Wafer Cassettes)

Miraial Co., Ltd. (Wafer Carriers)

Asahi Seisakusho Co., Ltd. (Quartz Fixtures & Tooling)

Koei Co., Ltd. (Quartz Fixtures & Tooling)

Ferrotec Material Technologies (Quartz Components)

ULVAC Technologies, Inc. (Equipment Spare Parts)

Iwaki Coating Kogyo Co., Ltd. (Fluorocarbon Resin Coatings)

Kurashiki Textiles Co., Ltd. (High-performance Resin Products)

Pillar Industrial Japan Co., Ltd. (Fluororesin Products)

Earth Attend Co., Ltd. (Fluororesin & Fluororubber Products)

Kumamoto Nichias Co., Ltd. (Fluororesin Tubes)

Technoflex Co., Ltd. (Flexible Hoses)

Yodogawa Hutech Co., Ltd. (Fluororesin Products)

Toho Electronics Co., Ltd. (Probe Cards)

Nidec Precision Inspection Technology Co., Ltd. (Probe Cards)

Nippon Electronic Materials Co., Ltd. (Probe Cards)

Polish Co., Ltd. (Probe Card Reinforcing Substrates)

Rika Denshi Co., Ltd. (Contact Probes)

N.F.T Co., Ltd. (Molds & Dies)

Kyushu Everloy Co., Ltd. (Cemented Carbide Fixtures & Tooling)

Suntec Co., Ltd. (Carrier Tapes)

Uni-techno Co., Ltd. (IC Sockets)

Nakayama Precision Co., Ltd. (Superhard Alloy Machining)

Maintenance Segment

Intertec Co., Ltd. (Manufacturing Equipment Refurbishment)

Applied Materials Japan K.K. (Technical Services)

IS·SEMISOLUTION (Equipment Maintenance & Repair)

Shinryo Corporation (Semiconductor Component Cleaning)

ULVAC Technologies, Inc. (Services)

Asahi Seiki Co., Ltd. (Maintenance Services)

HAMADA RECTECH (Wafer Reclamation / Wafer Recycling)

ASML Japan K.K. (Customer Services)

Otsuka Sangyo Co., Ltd. (Equipment Repair)

MCP Corporation (Cleaning of Cleanroom Garments & Related Supplies)

SCREEN SPE (Services)

KHC (Maintenance)

Kyushu C·I·C Laboratory Co., Ltd. (Cleanroom Garment Washing, Ultra-precision Special Cleaning)

Lam Research Japan K.K. (Services)

JM Engineering Service Co., Ltd. (Specialty Gas Piping Installation & Maintenance)

Disco Corporation (Services)

TCK (Maintenance)

Kyoei Precision Co., Ltd. (Lead Frame Testing)

Techserve Co., Ltd. (Repair Services)

RADICAL (Repair and Maintenance)

TESEC (Process Programming)

Macnica ATD Japan (Failure Analysis)

Overall, this compact region of Kumamoto boasts nearly every link across the entire semiconductor industrial chain imaginable. For wafer fabrication, key players include TSMC (JASM), Sony, Renesas and Mitsubishi Electric. Amkor and Toppan handle packaging and testing. Tokyo Electron and Ebara supply semiconductor manufacturing equipment, while Fujifilm and Tokyo Ohka Kogyo provide critical semiconductor materials. Even global industry giants such as ASML, Lam Research and Disco have established local service and maintenance hubs here.

These enterprises are densely clustered throughout Kumamoto Prefecture, and quite a number of them are situated in areas that experienced strong seismic shaking during the recent earthquake.

03 What impact might this have on the chip industry?

Drawing lessons from the 2016 Kumamoto earthquakes, during which two episodes of maximum Seismic Intensity 7 were recorded, potential impacts across several key areas merit close attention.

Image Sensors

Sony’s Kumamoto campus stands as one of its core production bases for CMOS image sensors. Production was fully halted here in the aftermath of the 2016 Kumamoto earthquakes; different manufacturing stages resumed operations at uneven paces, with certain segments taking weeks or even longer to bounce back completely. Although Sony implemented comprehensive seismic reinforcement upgrades post the 2016 disaster, the second half of the year marks the peak shipment season for smartphones. Prolonged factory shutdowns would likely trigger tight supply of image sensors worldwide.

Automotive & Power Semiconductors

The operational status of Renesas and Mitsubishi Electric is the primary focus here. Two Renesas factories have suspended production indefinitely. Among them, Renesas’ Kawashiri Plant serves as an 8-inch wafer frontend manufacturing hub, predominantly producing automotive MCUs and other related chips. Mitsubishi Electric also operates power semiconductor production facilities in Koshi City, where Seismic Intensity 6-lower was registered during this earthquake.

Automotive-grade chips feature an extremely long certification cycle, and switching alternative suppliers is highly cumbersome. If these manufacturing sites remain offline for an extended period, supply pressure will quickly ripple through Japanese automakers and their Tier 1 primary component suppliers.

On the foundry front: During the 2016 Kumamoto earthquake, TSMC's JASM factory in Japan did not yet exist. The situation is different now. JASM has become an important localized production capacity for TSMC in Japan, primarily serving the supply needs of key Japanese customers. This means that if this capacity is affected, it may not be quickly transferred to other fabs in the short term, unlike standardized capacity that can be more readily shifted.

Currently, employees at the factory have gradually returned to work. Satoshi Oyama, a semiconductor analyst at Grossberg LLC, also pointed out that JASM is not a major factory for TSMC, so the overall impact is limited.

On semiconductor equipment and materials: The Kumamoto region is home to companies such as Tokyo Electron, Shin-Etsu Quartz, and Ebara. Tokyo Electron has announced a full-day suspension of operations on the 29th for inspections. If this inspection stoppage escalates into a longer-term production halt, it could affect global equipment deliveries, installation, and maintenance schedules.

It should be clarified that semiconductor fabrication plants are built to extremely stringent seismic resistance standards. The genuine risks do not lie in building collapse, but rather in the scrapping of work-in-progress wafers, the mandatory recalibration of every piece of precision equipment one by one, and operational outages triggered by power and water cuts.

Drawing on lessons from the 2016 disaster, some production lines resumed partial operations within one to two weeks, yet full restoration to normal output often took several weeks. Currently, the Japan Meteorological Agency has warned that powerful aftershocks may strike within the next two to three days, injecting great uncertainty into the production resumption timeline.

Historically following major earthquakes in Japan, the spot semiconductor market typically witnesses widespread circulation of unverified notices, price hikes for various chip part numbers, and panic inventory stocking by distributors. Up to now, most manufacturers have not yet released official assessments of equipment damage. Judgments regarding the duration of production halts and potential supply shortages can only be finalized once all chipmakers complete their on-site inspections.

We advise market participants to stay rational, wait for official announcements, and avoid being driven by market sentiment.