Potential for Mega Earthquake in Japan Raises Concern Over Global Semiconductor Supply Chain

Recently on high alert, Japan is no stranger to earthquakes, being in one of the most seismically active regions in the world. However, megathrust earthquakes, which experts are increasingly concerned about, are a different magnitude of danger, even for a country accustomed to such natural disasters.
In addition to the undoubted human catastrophe, a natural disaster of this magnitude could devastate the nation’s infrastructure and send shockwaves through global semiconductor supply chains. The country’s critical role in the global tech industry makes this threat not just a national concern but a global one.
The disruption of Japan’s semiconductor industry in the aftermath of such a catastrophic quake would have global ramifications. Japan is a key player in producing semiconductors and the specialized equipment needed for their manufacture. The COVID-19 pandemic underscored the critical importance of these components, and the resulting semiconductor shortage highlighted their vital role in powering everything from smartphones to cars.
A significant disruption could lead to a worldwide shortage, severely impacting industries and economies around the globe.
Miyazaki, near the Nankai Trough, is prone to powerful earthquakes. Significant tremors in Miyazaki often indicate stress buildup along connected fault lines, potentially signaling a larger, more devastating Nankai earthquake. Historically, Miyazaki’s seismic activity has preceded major quakes in the Nankai area, raising concerns among experts about future large-scale disasters.
Japan’s integral role in the global semiconductor supply chain means that the impact of such a disaster would reverberate far beyond its borders. The 2011 earthquake exposed this vulnerability when a damaged semiconductor factory in Ibaraki Prefecture disrupted global automotive production for months. This facility was crucial for manufacturing microcontrollers for car engines, holding a significant portion of the global market.