Japanese Semiconductor Firms Assessing Impact To Factories Following Devastating Earthquake

Jan 2, 2024 at 02:42pm EST
Japanese Semiconductor Firms Assessing Impact To Factories Following Devastating Earthquake 1

The Japanese semiconductor industry has started to see "aftershocks" of the devastating earthquake that occurred recently.

TSMC & Other Japanese Firms Report Marginal Production Cuts Amid Calamity, Impact Confined To a Limited Scale

According to an analysis by a local investment consultant (via Ctee), it seems like semiconductor firms have started to see the effects of the "lethal" earthquake that has caused devastation all around Japan which had a magnitude of 7.6 on the Richter scale.

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The analysis includes the situation of six major industries including foundry, silicon wafer, memory, packaging and testing, equipment testing, and passive components, featuring the likes of  USJC, TSMC, PowerCell, and ASE which are based in Japan. Despite the extreme magnitude, it is disclosed that firms haven't seen as big of an impact of what was expected, but there are production reductions at some stages.

Image: Ann Wang/Reuters

Starting with TSMC, the firm's factory located in Kumamoto, Kyushu has seen an impact at levels 1-2 which comes under the lesser range, but it is still something that has resulted in disruptions. Moreover, the most affected semiconductor company by the earthquake is UMC USJC (United Semiconductor Japan), which is on an impact level 4. The company has seen production drop by a noticeable margin, potentially creating problems in the supply of logic ICs and power discrete components.

Firms such as SUMCO and others have also been victims of the earthquakes as well, but the production levels haven't been impacted on a larger scale. However, the natural calamity has taken the Japanese industry by storm, and we hope that it recovers back to its original state soon.

News Source: Ctee

About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.

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