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Japanese semiconductor companies largely ignored the 7.3-magnitude earthquake
A 7.3-magnitude earthquake hit Japan yesterday, knocking out power in the affected areas. Market researchers at TrendForce today searched for news of the immediate and lasting impacts on semiconductor production, including those operated by Kioxia, Micron and Sony, in the aftermath of the earthquake.
The production outage appears to have been minor overall, but the earthquake had other, more permanent and sad consequences. The earthquake, whose epicenter was off the coast of Fukushima, struck around midnight local time, killing at least four and injuring more than 100.
Kioxia – the input chip is damaged
In recent weeks, we have reported that Kioxia’s NAND manufacturing lines have closed due to contamination issues. The manufacturing error has had a very large impact on the supply of this core component of SSDs, and it is expected that there will be at least a small impact on prices, perhaps as high as 10%. However, due to a cautious restart of manufacturing, the K1 Fab from Kioxia (located in Kitakami, where the earthquake had a magnitude of 5) was not fully operational.
It looks like it will take some time to get the K1 Fab up to full production due to the earthquake and the possibility of aftershocks in the next week or so. It should be noted that some of the chip’s inputs are “partially corrupt,” according to TrendForce. The spoiled products and materials should be minimal because chip damage was limited by the duration of the earthquake.
Sony, Sumco, and others
Reports say Sony has three factories in areas close enough to the epicenter to be affected. As a precaution, Sony’s storage media factory, semiconductor laser factory, and image sensor factory have temporarily halted all operations.
Sumco and Shin-Etsu might be less common names but they are manufacturers of semiconductor chips in the 5+ affected region. TrendForce notes that chip manufacturing requires “extremely high stability”, so there is a possibility that its production will be affected.
Finally, Renesas, which operates mainly in the automotive sector, was temporarily closed and had to conduct a thorough check of facilities. Four of the crackers, including two 12-inch crackers, were in areas of intensity from 1 to 3 earthquakes, so they did not experience any major disturbances.
We will be watching developments in the news regarding the increase in semiconductor costs due to the major earthquake in Japan over the next few days. Sometimes there are several days between evaluations and the announcement of the effects and costs.
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