News & Analysis
Japan quake: Tracking the status of fabs in wake of disaster
3/14/2011 2:30 PM EDT
Consumer electronics firms/automakers
Consumer electronics companies also reported manufacturing interruptions and damage as a result of the earthquake, including Canon and Nikon, which made cameras, photolithography equipment and other products.
Canon Inc. said it suspended operations at eight manufacturing facilities in the north of Japan's main island, Honshu through at least Monday. These include Canon Inc. factories in Tochigi prefecture and Ibaraki prefecture as well as other facilities maintained by other members of Canon Group companies in Ibaraki, Aomori and Fukushima prefectures. Canon reported 15 people were injured in the quake at its facilities in Utsunomiya, Tochigi prefecture. Canon indicated that it will likely be some time before the facilities in Utsunomiya and the Fukushima Canon Inc. ink-jet printer manufacturing facility can resume operations. In the event that production operations may be suspended for one month or more, Canon said it would consider making use of alternate sites that were not damaged by the earthquake as a means of continuing production. Canon said the earthquake had a slight impact on Canon facilities in the western half of Honshu, but there have been no injuries and no significant damage to buildings or equipment reported there.
Kyocera Group reported that production resumed March 22 at its Koriyama chemical plant in Fukushima prefecture and a plant that produces quartz crystal components in Higashine City, Yamagata prefecture, both of which sustained structural damage and equipment damage in the earthquake. Another facility that was damaged, Kyocera Corp.'s Fukushima Tanagura plant, which produces handsets and base stations, resumed partial production on March 15. Partial or full production has now been restored at all nine Kyocera facilities in Northeast Japan and Eastern Japan that were in proximity to the earthquake's epicenter, Kyocera said. The company warned that planned rolling power outages could still interrupt production.
Nikon Corp. suspended production at two plants in Miyagi prefecture and was assessing the damage following the April 7 aftershock, according to Bloomberg.. Miyagi Nikon Precision Co., which makes devices for IC/LCD steppers and scanners, resumed operations late last month following the March 11 quake. Nikon previously reported that its Tochigi Nikon Corp. facility in Tochigi prefecture, which manufactures devices and lenses for IC/LCD steppers and scanners, restarted production on March 18. Nikon said it expected to resume operations by the end of March at two severely damaged facilities: Sendai Nikon Corp., which makes cameras, and Miyagi Nikon Precision Co., which makes devices for IC and LCD steppers and scanners. A Nikon official said the company is currently trying to asses whether the damage will impact shipments of lithography tools. Nikon also warned that its production facilities would continue to be affected by rolling blackouts and other circumstances related to the aftermath of the disaster. Also Tuesday, Nikon reported that one of its employees was killed in the disaster and that three others remain missing.
Honda Motor Co. Ltd. said March 24 that it will take several months for production to resume at its plant in Tochigi prefecture and its R&D center there. The company extended its suspension of production at two auto plants in Mie and Saitama prefectures though April 3. About manufacturing on April 4 and beyond, "Honda will make decisions based on the status of the recovery of Japanese society as a whole as well as the supply of parts," the company said. The Wall Street Journal reported on its website Tuesday (March 29) that Honda said it would curb assembly operations at North American plants by an unspecified amount in order to conserve parts. Most of Honda's Japan-based suppliers are making progress to restart production, and many either have or are ready to resume parts production, but there are a few suppliers that have yet to resolve the challenge to resume their production, Honda said. The company said that in those cases it is working with its suppliers to help reestablish their operations while evaluating other possible sources for those parts in the supply chain. Honda is making every effort to work toward a full recovery as quickly as possible, the company said. Honda said it would resume motorcycle production at its factory Kumamoto prefecture on March 28. Honda's U.S. and Canadian and Mexico Honda plants are continuing normal output of finished vehicles, Honda said. Honda has made contact with all Tier 1 suppliers in Japan and is collecting information from them regarding the status of their operations, the company said. Honda last week confirmed that one its employees, a 43-year-old R&D associate at the company's Tochigi R&D Center, was killed during the earthquake when a wall collapsed in a cafeteria. In addition, 17 Honda employees were injured in the Tochigi area from collapsing ceilings and other damage during the earthquake, Honda said.
Isuzu Motor Ltd. said following the earthquake it would suspend manufacturing at its two Japanese plants for several days, according to a report by the Wall Street Journal.
Mazda Motor Corp. said on March 18 that it would restart producing replacement parts, parts for overseas production and vehicles utilizing “in-process” inventories at its production plants in Hiroshima and Hofu on March 22. Both facilities had been idled since the quake struck. Mazda said the temporary resumption of operations would not affect recovery and relief activities in the areas affected by the earthquake. The company said a decision on the resumption of full-scale production of both parts and vehicles would be made at a later date.
Mitsubishi Motors Corp. said all of its manufacturing facilities are located outside the earthquake zone and that none have been affected by the Tohoku earthquake, but that some of its suppliers have reported damages. Mitsubishi said it suspended plant operations on March 14 and 15 to prioritize safety verifications at its suppliers. The Wall Street Journal reported on March 21 that Mitsubishi operated its three Japanese plants late last week but halted operations Saturday through Monday--a three day weekend in Japan. Mitsubishi planned to restart production on May 22, according to the Wall Street Journal.
Citing Japan's Nikkei business daily, the Reuters news service reported Tuesday (March 29) that Nissan Motor Co. expects April output at its China unit to fall 10 percent below target because of supply chain disruptions in Japan. Reuters also reported that both Nissan and Toyota acknowledged Tuesday that it would be some time before they could return to full production. Reuters reported that the destruction in Japan has led to an industry-wide vehicle production loss of 400,000 vehicles so far. Nissan said on March 20 that it expected most of its plants to be only partially operational by March 25 due to restricted delivery of parts. Nissan said its Oppama, Tochigi, Kyushu and Yokohama plants were to begin producing parts for overseas manufacturing and repair parts on March 21. The company said Nissan's engine plant in Iwaki will not open until sometime later due to continued aftershocks in the area and ongoing infrastructure repairs. According to Forbes, the disaster resulted in damage at six Nissan plants and the tsunami destroyed 2,300 completed vehicles, 1,300 of which were bound for the U.S.
Suzuki Motor Corp. said it incurred no damage to personnel, headquarters or manufacturing plants located in the Shizuoka prefecture region. "We are currently gathering information about any additional effects to Suzuki’s operations, including port distribution, plant and dealership operations, as well as our vendors and suppliers located in the damaged areas," the company said in a statement.
Toyota Motor Corp. announced April 8 that it would adjust North American production due to parts availability following the March 11 earthquake. Over the next few weeks, Toyota’s North American vehicle plants will operate on a reduced schedule, with production suspended on April 15, 18, 21, 22, and 25, Toyota said. Most of the company’s North American engine and component plants will follow the same schedule, the company said. Future production plans will be determined at a later date, Toyota said. On March 29, Toyota said it had identified approximately 233 parts (out of more than 300,000) have been placed on controlled allocations because of damage sustained by certain Japanese parts suppliers. Controlled allocation means orders must be made manually via a special order release form and must be for a specific customer vehicle, Toyota said. The company also requested that dealerships refrain from placing any orders in excess of what is critically needed to support customer emergency need and true customer demand. On March 24, Toyota said it would resume production in Japan of its Prius hybrid vehicle and two Lexus models on March 28. On March 22, the company extended its vehicle-production halt started on March 14 at all plants in Japan, including subsidiary vehicle manufacturers, through March 26. A decision on when vehicle production will resume in Japan has yet to be made, Toyota said. The company added that its parts plants in Japan resumed production of replacement parts for vehicles already on the market on March 17 and resumed the production of parts for overseas production on March 21.
Consumer electronics companies also reported manufacturing interruptions and damage as a result of the earthquake, including Canon and Nikon, which made cameras, photolithography equipment and other products.
Canon Inc. said it suspended operations at eight manufacturing facilities in the north of Japan's main island, Honshu through at least Monday. These include Canon Inc. factories in Tochigi prefecture and Ibaraki prefecture as well as other facilities maintained by other members of Canon Group companies in Ibaraki, Aomori and Fukushima prefectures. Canon reported 15 people were injured in the quake at its facilities in Utsunomiya, Tochigi prefecture. Canon indicated that it will likely be some time before the facilities in Utsunomiya and the Fukushima Canon Inc. ink-jet printer manufacturing facility can resume operations. In the event that production operations may be suspended for one month or more, Canon said it would consider making use of alternate sites that were not damaged by the earthquake as a means of continuing production. Canon said the earthquake had a slight impact on Canon facilities in the western half of Honshu, but there have been no injuries and no significant damage to buildings or equipment reported there.
Kyocera Group reported that production resumed March 22 at its Koriyama chemical plant in Fukushima prefecture and a plant that produces quartz crystal components in Higashine City, Yamagata prefecture, both of which sustained structural damage and equipment damage in the earthquake. Another facility that was damaged, Kyocera Corp.'s Fukushima Tanagura plant, which produces handsets and base stations, resumed partial production on March 15. Partial or full production has now been restored at all nine Kyocera facilities in Northeast Japan and Eastern Japan that were in proximity to the earthquake's epicenter, Kyocera said. The company warned that planned rolling power outages could still interrupt production.
Nikon Corp. suspended production at two plants in Miyagi prefecture and was assessing the damage following the April 7 aftershock, according to Bloomberg.. Miyagi Nikon Precision Co., which makes devices for IC/LCD steppers and scanners, resumed operations late last month following the March 11 quake. Nikon previously reported that its Tochigi Nikon Corp. facility in Tochigi prefecture, which manufactures devices and lenses for IC/LCD steppers and scanners, restarted production on March 18. Nikon said it expected to resume operations by the end of March at two severely damaged facilities: Sendai Nikon Corp., which makes cameras, and Miyagi Nikon Precision Co., which makes devices for IC and LCD steppers and scanners. A Nikon official said the company is currently trying to asses whether the damage will impact shipments of lithography tools. Nikon also warned that its production facilities would continue to be affected by rolling blackouts and other circumstances related to the aftermath of the disaster. Also Tuesday, Nikon reported that one of its employees was killed in the disaster and that three others remain missing.
Automakers
Honda Motor Co. Ltd. said March 24 that it will take several months for production to resume at its plant in Tochigi prefecture and its R&D center there. The company extended its suspension of production at two auto plants in Mie and Saitama prefectures though April 3. About manufacturing on April 4 and beyond, "Honda will make decisions based on the status of the recovery of Japanese society as a whole as well as the supply of parts," the company said. The Wall Street Journal reported on its website Tuesday (March 29) that Honda said it would curb assembly operations at North American plants by an unspecified amount in order to conserve parts. Most of Honda's Japan-based suppliers are making progress to restart production, and many either have or are ready to resume parts production, but there are a few suppliers that have yet to resolve the challenge to resume their production, Honda said. The company said that in those cases it is working with its suppliers to help reestablish their operations while evaluating other possible sources for those parts in the supply chain. Honda is making every effort to work toward a full recovery as quickly as possible, the company said. Honda said it would resume motorcycle production at its factory Kumamoto prefecture on March 28. Honda's U.S. and Canadian and Mexico Honda plants are continuing normal output of finished vehicles, Honda said. Honda has made contact with all Tier 1 suppliers in Japan and is collecting information from them regarding the status of their operations, the company said. Honda last week confirmed that one its employees, a 43-year-old R&D associate at the company's Tochigi R&D Center, was killed during the earthquake when a wall collapsed in a cafeteria. In addition, 17 Honda employees were injured in the Tochigi area from collapsing ceilings and other damage during the earthquake, Honda said.
Isuzu Motor Ltd. said following the earthquake it would suspend manufacturing at its two Japanese plants for several days, according to a report by the Wall Street Journal.
Mazda Motor Corp. said on March 18 that it would restart producing replacement parts, parts for overseas production and vehicles utilizing “in-process” inventories at its production plants in Hiroshima and Hofu on March 22. Both facilities had been idled since the quake struck. Mazda said the temporary resumption of operations would not affect recovery and relief activities in the areas affected by the earthquake. The company said a decision on the resumption of full-scale production of both parts and vehicles would be made at a later date.
Mitsubishi Motors Corp. said all of its manufacturing facilities are located outside the earthquake zone and that none have been affected by the Tohoku earthquake, but that some of its suppliers have reported damages. Mitsubishi said it suspended plant operations on March 14 and 15 to prioritize safety verifications at its suppliers. The Wall Street Journal reported on March 21 that Mitsubishi operated its three Japanese plants late last week but halted operations Saturday through Monday--a three day weekend in Japan. Mitsubishi planned to restart production on May 22, according to the Wall Street Journal.
Citing Japan's Nikkei business daily, the Reuters news service reported Tuesday (March 29) that Nissan Motor Co. expects April output at its China unit to fall 10 percent below target because of supply chain disruptions in Japan. Reuters also reported that both Nissan and Toyota acknowledged Tuesday that it would be some time before they could return to full production. Reuters reported that the destruction in Japan has led to an industry-wide vehicle production loss of 400,000 vehicles so far. Nissan said on March 20 that it expected most of its plants to be only partially operational by March 25 due to restricted delivery of parts. Nissan said its Oppama, Tochigi, Kyushu and Yokohama plants were to begin producing parts for overseas manufacturing and repair parts on March 21. The company said Nissan's engine plant in Iwaki will not open until sometime later due to continued aftershocks in the area and ongoing infrastructure repairs. According to Forbes, the disaster resulted in damage at six Nissan plants and the tsunami destroyed 2,300 completed vehicles, 1,300 of which were bound for the U.S.
Suzuki Motor Corp. said it incurred no damage to personnel, headquarters or manufacturing plants located in the Shizuoka prefecture region. "We are currently gathering information about any additional effects to Suzuki’s operations, including port distribution, plant and dealership operations, as well as our vendors and suppliers located in the damaged areas," the company said in a statement.
Toyota Motor Corp. announced April 8 that it would adjust North American production due to parts availability following the March 11 earthquake. Over the next few weeks, Toyota’s North American vehicle plants will operate on a reduced schedule, with production suspended on April 15, 18, 21, 22, and 25, Toyota said. Most of the company’s North American engine and component plants will follow the same schedule, the company said. Future production plans will be determined at a later date, Toyota said. On March 29, Toyota said it had identified approximately 233 parts (out of more than 300,000) have been placed on controlled allocations because of damage sustained by certain Japanese parts suppliers. Controlled allocation means orders must be made manually via a special order release form and must be for a specific customer vehicle, Toyota said. The company also requested that dealerships refrain from placing any orders in excess of what is critically needed to support customer emergency need and true customer demand. On March 24, Toyota said it would resume production in Japan of its Prius hybrid vehicle and two Lexus models on March 28. On March 22, the company extended its vehicle-production halt started on March 14 at all plants in Japan, including subsidiary vehicle manufacturers, through March 26. A decision on when vehicle production will resume in Japan has yet to be made, Toyota said. The company added that its parts plants in Japan resumed production of replacement parts for vehicles already on the market on March 17 and resumed the production of parts for overseas production on March 21.
Company-by-company status reports:
1. Chip makers, A-O
2. Chip makers, P-T
3. Chip equipment/materials suppliers
4. CE manufacturers/automakers
5. Test and measurement companies
1. Chip makers, A-O
2. Chip makers, P-T
3. Chip equipment/materials suppliers
4. CE manufacturers/automakers
5. Test and measurement companies
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Silicon_Smith
3/15/2011 11:50 AM EDT
Fujitsu seems to have been really impacted badly. No numbers yet, but I am afraid it might really effect their revenue for 2011.
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Luis Sanchez
3/15/2011 4:43 PM EDT
This is a very good note.
It's best to know which factories were damaged so that we can take our precautions. If there are some which will take until july the earliest to be ready that's seems to be quite a big damage! You can't help feeling sorry for all the japanese people.
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goafrit
3/16/2011 1:22 PM EDT
I think the whole of Japan GDP will depress. It will be a miracle if this does not trigger domino bankruptcies for many firms.
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docdivakar
3/16/2011 6:50 PM EDT
This is a good article, thanks EE Times! It is good info on the fabs, but I imagine the effects are even more severe on the ancillaries / ecosystem partners of the Semi fabs.
Even with minimal damages, I am sure there are building code requirements that limit re-opening of facilities without inspection by professional engineers. Looks like we will be in for a drawn-out recovery phase in Japan. In the mean time this is sure going to have an impact on the availability and pricing of many consumer gadgets and devices.
Dr. MP Divakar
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lifewingmate
3/18/2011 11:33 AM EDT
I agree with Dr. Divakar that EE Times did an excellent job on this article providing pertinent details in an overview that spans the entire semiconductor industry in Japan. I send out my thoughts and wishes of full recovery and healing for the people of Japan.
I learned quite a bit about Japan's crucial role in providing limited resources and manufacturing facilities to produce some of the world's most desired electronics. Thank you for this report, EETimes! Hopefully, we can all pitch in globally to help them recover quickly.
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$@ru
3/18/2011 5:41 AM EDT
Hope some new locations like India will get a chance to set up fabs. Now its snowing in Japan. Don't play with nature. if it returns the favour we are helpless.
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Sheetal.Pandey
3/31/2011 6:51 AM EDT
Oh my god! so much of loss would have occured to Japan's economy. Loss of people and loss of resources. But Japan is prone to earthquakes right?
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