On July 28 at 16:27 local time, a 7.1 magnitude earthquake struck an area near Uki, Kumamoto Prefecture in western Japan. The earthquake prompted local authorities to issue a tsunami warning for the Ariake and Yatsushiro seas within minutes, but the warning was lifted on the same day.
Following the initial quake, over 100 aftershocks of up to 5.8 in magnitude were recorded. The death toll currently stands at 38, while around 9,000 people remain in evacuation shelters. According to Kyushu Electric Power, almost 50,000 customers lost their power supply due to the earthquake.
Search and rescue operations were launched following the quake but have been hampered by uncommonly high temperatures in many areas.
The earthquake also caused widespread logistics and production disruptions in Kumamoto Prefecture and beyond, impacting regional rail and flight services. In addition, there have been disruptions in manufacturing operations at dozens of companies in sectors such as automotive, semiconductors, food and beverage, or pharmaceuticals.
While the situation in the region has started to improve in the week since the earthquake struck, production at several automotive companies is expected to remain disrupted during the first week of August.
Earthquake disrupts logistics and manufacturing operations in Kumamoto Prefecture
The earthquake led to the temporary suspension of runway operations at the Kumamoto International Airport (IATA: KMJ) and forced Japan Airlines and All Nippon Airways to cancel all flights to and from the airport on the day the quake struck. Minor repair works are ongoing at the airport, but flight operations have reportedly normalized.
The Kyushu Railway Company was forced to suspend some train services crossing through the affected areas, with some sections of the railway network expected to need extensive repairs before train services can resume.
The earthquake also damaged parts of the region’s road network, with cracks caused by the quake disrupting traffic along local roads and expressways.
Operational impacts in the automotive sector to extend into August
The earthquake has caused widespread production disruptions in industries such as the automotive, semiconductors, food and beverage, and pharmaceuticals sectors.
The island of Kyushu, where the Kumamoto Prefecture is located, is a key hub for the country’s automotive and semiconductor industries, which account for roughly 40% of the region’s total industrial output.
However, in a sign that production impact in the region could be comparatively short-lived, many of the local stoppages were reportedly driven by safety concerns, including pre-emptive workforce evacuations, rather than actual damage to plant infrastructure or fatalities.
Semiconductors
Taiwan Semiconductor Manufacturing Company Limited, the world’s largest contract chipmaker, evacuated all staff from its Japan Advanced Semiconductor Manufacturing (JASM) fab in Kumamoto.
Similarly, Sony Group Corporation, one of Japan’s biggest electronics companies, evacuated all workers from its semiconductor facilities in the region and temporarily halted production following the quake.
While the destruction appears more limited compared to previous earthquakes, some companies confirmed damages at their facilities, including Renesas Electronics Corporation, which shut down operations at two plants in Kumamoto, after fallen ceiling panels, water leaks, and cracks in the walls were discovered after the quake. The company currently expects to return to pre-earthquake production capacity by the end of August.
Automotive
Despite limited physical damage, disruptions to production processes in the automotive industry have also led to spillover effects, causing production halts at automotive plants in other parts of the country.
Despite not being in the most affected area, Nissan Motor Co., Ltd. reportedly expects that production will be reduced by around 5,000 units because of a partial 6-day shutdown at its factory in Fukuoka located north of Kumamoto Prefecture due to supply disruptions caused by the earthquake.
Toyota Motor Corporation has halted production at its plant in Tahara-shi, Aichi Prefecture, from August 3 to 7 due to disruptions in component supply arising from stoppages at its three plants in Kyushu.
Mitsubishi Motors Corporation was forced to halt production at its Mizushima plant in Kurashiki-shi, Okayama Prefecture, from July 30 until August 5 for similar reasons.
Meanwhile, almost a week after the earthquake struck, Honda Motor Co. Ltd. announced that it would have to pause production at its plants in Suzuka-shi, Mie Prefecture and in Yorii, Saitama Prefecture on August 6 and August 7 as parts supply from companies in Kyushu remains disrupted.
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