Let’s remember briefly: On the first day of 2024, strong earthquakes occurred in central Japan. The magnitude of the first was estimated at 5.7. Later, the magnitude of the aftershocks reached 7.6. You can see the destruction and high waves covering the beach in numerous videos. As of January 3, it is known that 64 people died and more than 300 people were injured.

Implications for chip manufacturers

According to analysis by a local investment advisor, it seems Semiconductor companies are already feeling the effects of the earthquake.

The analysis covers the situation in six major industries, including foundry, silicon wafer manufacturing, memory, packaging and testing, equipment testing and passive components, with companies such as USJC, TSMC, PowerCell and ASE, all based in Japan.

• TSMC’s facility in Kumamoto, Kyushu was slightly affected by magnitude 1-2 but still caused disruptions.
• Semiconductor company UMC USJC (United Semiconductor Japan) was the company most affected by the earthquake; The earthquake of magnitude 4 was felt in the region. The company’s production has decreased significantly, which could potentially create problems with microcircuits and discrete power supply. components.
• Companies such as SUMCO and others were also affected by the earthquake, but their production volumes were not much affected.

It does not appear to have a significant impact on the industry. It is likely that companies will be able to catch up with the old working tempo in the near future. Moreover, of all these companies, only TSMC is large enough to affect the entire world.