Japan earthquake disrupts auto and chip production as death toll rises to 34

A powerful earthquake that struck Japan’s Kumamoto region has killed at least 34 people and disrupted major manufacturing operations, exposing the continued vulnerability of the country’s industrial supply chains. The 7.1 magnitude quake damaged roads, interrupted essential services and forced several automobile and semiconductor companies to suspend production, raising concerns about delays across global supply networks.

The earthquake struck on Tuesday, causing widespread destruction in southern Japan. Thousands of households were left without basic utilities while damaged roads and transport links made it difficult for businesses to continue normal operations. Kumamoto is one of Japan’s most important manufacturing regions and plays a key role in producing vehicles, auto parts and semiconductors used around the world.

Toyota has temporarily suspended production at three factories in Fukuoka until August 5 because of concerns about employee safety and disruptions affecting suppliers and transport companies. The company has also decided to halt operations at one of its plants in Aichi, located more than 600 kilometres from the disaster zone, showing how shortages of essential components can quickly affect factories far from the earthquake’s epicentre.

One of Toyota’s major suppliers, Aisin, also suffered disruptions at its factory near the hardest hit area. The company manufactures engines, doors and other vehicle parts for Toyota, Nissan and Daihatsu. Aisin said it plans to restart production gradually after confirming that facilities are safe and product quality can be maintained. However, it has not announced when full operations will resume. Trucks carrying supplies, including portable toilets, were seen entering the factory as recovery work continued. Local businesses reported that water services had been interrupted although electricity remained available.

The latest disaster has revived memories of the 2016 Kumamoto earthquake, which caused severe damage to the same Aisin plant and forced Toyota to suspend production across Japan because of shortages of a critical door component. Industry officials said smaller suppliers further down the supply chain may also have been affected this time, increasing the risk of continued production delays.

Auto parts manufacturer Denso said one of its suppliers had already reported damage while several others were still assessing conditions. Nissan has suspended some production at its two vehicle plants in Kyushu because of delays in receiving parts. Mitsubishi Motors has also halted certain production lines at its factory in Okayama as the effects of the earthquake continue to spread through the manufacturing sector.

Kumamoto has also become one of Japan’s leading centres for semiconductor production in recent years. The region is often referred to as the country’s Silicon Valley because of its concentration of advanced chip manufacturers. Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker, evacuated workers from its Kumamoto plant immediately after the earthquake. The company later confirmed that operations had started to resume within a few hours.

Other semiconductor companies are expected to take longer to recover. Renesas said damage at one of its facilities included fallen ceiling panels, cracked walls and water leaks. The company plans to restart production in stages beginning on August 5. Tokyo Electron announced that it expects to resume production next week, while Sony said efforts are continuing to restore operations at its semiconductor factory in Kumamoto.

Although the number of deaths is lower than the more than 260 people killed in the 2016 earthquake, this disaster has still caused significant human and economic losses. Nearly half of the fatalities occurred inside commercial buildings. Nine people died when severe structural damage struck a Nippon Paper Industries mill near the epicentre. Another seven people lost their lives at an Aeon shopping mall where authorities believe a gas explosion occurred more than an hour after the initial earthquake. The disaster has once again highlighted the challenge Japan faces in protecting both its population and its globally important manufacturing industry from natural disasters.