Earthquake Disrupts Chips and Components

What They Say

Wednesday saw a substantial earthquake off the Northeast Coast of Japan. The quake registered as magnitude 7.3, down below the level 9.0 of the disastrous one that caused the tsunami that devastated Fukushima 11 years ago. It caused disruption for a number of component suppliers including:

  • Renesas – a key chip supplier for the automotive sector
  • Murata – a big supplier of capacitors – which halted production at four factories
  • Sony- which closed two factories in Miyagi and a third in Yamagata which make image sensors, laser diodes, and storage media

As well as the disruption to industry, ‘at least’ two million homes lost power. A shinkansen train was also derailed.

What We Think

The list of impacts on the supply chain, especially for automotive, just goes on and on. The Ukraine, for example, has been a significant supplier of wiring looms to VW for its cars and although it is re-organising supply, its production has been hit. (BR)

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