Japan quake snarls auto and chip supply chains as toll hits 34

A powerful earthquake that struck southern Japan has exposed the vulnerability of the country's manufacturing supply chains, a decade after a devastating quake in the same region triggered widespread industry disruption. Tuesday's 7.1-magnitude quake claimed at least 34 lives, ruptured roads, and cut off utilities to thousands of households.

The quake brought factories to a halt in an area critical to Japan's auto industry and known as the country's "Silicon Valley" due to its concentration of semiconductor firms. While economists do not expect disruption on the scale seen after the 2016 quake, problems could persist for automakers, where parts shortages can snarl production far and wide.

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The decision for the suspensions was made in consideration of safety and the situation at distribution companies and suppliers.

Toyota has suspended production at three plants in Fukuoka through Aug. 5, and one plant in Aichi will be idled next week. Aisin, a key parts supplier for Toyota, Daihatsu, and Nissan, is preparing to restart production sequentially on lines where safety and quality can be confirmed, but has yet to determine when full operations can resume.

Nissan has suspended some production at its two Kyushu vehicle plants due to parts delivery delays, while Mitsubishi Motors is halting some production at a plant in Okayama. The latest quake will test the resilience efforts manufacturers have undertaken for decades, given Japan's proneness to disasters.

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it was preparing to restart production "sequentially on lines where safety and quality can be confirmed".