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Magnitude 7.3 earthquake shuts down some semiconductor factories in Japan

Magnitude 7.3 earthquake shuts down some semiconductor factories in Japan

 



The earthquake that struck Japan last week measured a magnitude of 7.3, causing a power shortage in the affected areas. Market experts confirmed reports of a rapid impact on semiconductor production in the wake of the earthquake, including factories operated by Kioxia, Micron and Sony.

While production delays appear to have been mild in general, the earthquake had more serious and tragic consequences. The earthquake, whose epicenter was off the beach of Fukushima, struck midnight local time, killing at least four people and injuring more than 100.

Kioxia’s NAND manufacturing lines have been closed due to contamination concerns in recent weeks. Manufacturing error has had a significant impact on the availability of this critical component of SSDs and is expected to have a slight impact on price, perhaps as high as 10%. However, due to a cautious restart of manufacturing, Kioxia’s K1 facility (located in Kitakami, Japan, the epicenter of the 5-magnitude earthquake) was not fully operational. After this latest earthquake-induced shutdown, it appears that it will take some time to resume operations at the K1 facility at full production capacity.

According to reports, Sony has three facilities in locations around the epicenter that may have been affected. As a precaution, Sony has temporarily halted operations at its storage media plant, laser semiconductor plant, and image sensor plant.

Sumco and Shin – Etsu, two lesser known companies, manufacture semiconductor wafers in the Richter region. Since chip manufacturing requires “very high stability”, its output is likely to be affected.

Finally, Renesas, which operates mostly in the automation industry, has had to temporarily close and conduct an extensive investigation of its facilities. Four wafer plants, including two 12-inch wafer operations, were located in 1 to 3 earthquake zones and did not experience severe outages. We will keep you updated on how this affects the market, and if we receive any information, we will notify you as soon as possible.

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