7.1-Magnitude Earthquake in Kumamoto Prompts Preventive Shutdowns at Semiconductor Plants, Sony Facility Halts

After a 7.1-magnitude earthquake struck Kumamoto Prefecture, Japan on July 28, major local semiconductor factories have taken preventive shutdowns for maintenance. Sony Semiconductor Manufacturing Corporation's Kumamoto Technology Center fully halted production after the quake and remains idle. Damage to the facility's buildings and production lines is being assessed. The company's other technology centers in Nagasaki, Oita, and Kagoshima prefectures have not yet reported serious damage to buildings or equipment. No casualties were reported among employees on duty at all plants when the earthquake occurred.

TSMC's Kumamoto JASM Phase 1 plant, which focuses on 12- to 28-nanometer processes and mass-produces CIS, SoC, and various automotive chips, is now fully halted for safety inspections. The extent of damage to production facilities and the duration of the production line interruption cannot yet be determined. JASM Phase 2, planned for completion in 2028, is still under construction and has partially suspended work. Sony's Kumamoto plant, with CIS image sensors as its core product, is conducting a comprehensive assessment for resumption of operations. Renesas Electronics' Kumamoto plant, which primarily produces automotive MCUs and SoCs, and Mitsubishi Electric's Kumamoto plant, which focuses on automotive IGBTs and SoC chips, both stated that they are inspecting the details of damage to buildings and precision equipment, with no clear timetable for resumption of production.

The power semiconductor market was already in a price hike cycle. In the first half of 2026, nearly 20 companies including Infineon and China Resources Microelectronics completed two rounds of price adjustments, with increases ranging from 10% to 25% and lead times extended to over 30 weeks. No casualties or structural damage have been reported at any plant. The industry generally estimates inspection periods of 3 to 7 days, and transportation disruptions in Kyushu are also causing short-term constraints on component shipping.