Japan Advanced Semiconductor Manufacturing's (JASM) Kumamoto No. 1 factory in Kikuyo, Kumamoto Prefecture. JASM is a subsidiary of Taiwan Semiconductor Manufacturing Co. (TSMC). (©Sankei/Kan Emori)
The magnitude 7.1 earthquake that struck Kumamoto Prefecture dealt a major blow to Kyushu’s semiconductor industry, which is heavily concentrated in the region.
Manufacturers that suspended production lines are assessing damage to factory equipment and evaluating the impact on operations as they work to resume production as quickly as possible.
Kyushu, Japan's southwestern main island, accounts for the largest share of Japan's integrated circuit (IC) production and supplies a wide range of semiconductors used in smartphones, automobiles, and other products. A prolonged disruption could have repercussions for manufacturers in Japan and overseas.
Japan's Semiconductor Hub
Known as the country's "Silicon Island," Kyushu is home to around 1,000 semiconductor-related companies, many of them in Kumamoto Prefecture.
The region produces everything from advanced logic chips that serve as the brains of electronic devices to power semiconductors used to control high voltages and currents. These are supplied to manufacturers in Japan and abroad for use in smartphones, cameras, automobiles, and other applications.
According to the Kyushu Bureau of Economy, Trade and Industry, the region's IC production totaled ¥1.93 trillion (about $12.4 billion) in 2025, accounting for 36% of Japan's total output.
Production has grown by nearly 50% over the past five years, driven by rising global demand for semiconductors and the 2021 announcement by Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, that it would build a plant in Kumamoto.
Growth Plans Remain on Track
The Japanese government's growth strategy calls for up to ¥68 trillion (about $435 billion) in public and private investment in the semiconductor sector through fiscal 2040, providing further momentum for the industry.
However, if production remains disrupted for an extended period, the effects could spread across a wide range of industries.
Taito Kobayashi, deputy senior researcher at Itochu Research Institute, said Kyushu's strengths as a semiconductor hub remain unchanged. Among them are its abundant supply of high-quality water, which is essential for semiconductor manufacturing, and its concentration of related companies, which facilitates collaboration.
He added that the disaster could also serve as an opportunity to reassess disaster management measures.
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(Read the article in Japanese.)
Author: Ryotaro Fukuda, The Sankei Shimbun
