Supply Chain Hits Again After Japan Parts Makers Halt Production After the Earthquake

Japan's Renesas Electronics Corp, Murata Manufacturing Co Ltd, Sony Group Corp, and other precision parts makers halted some operations jolted the country's northeast, the latest blow to the global supply chain after an earthquake.

FREMONT, CA: Following an earthquake in Japan's northeast, Renesas Electronics Corp, Murata Manufacturing Co Ltd, Sony Group Corp, and other precision components producers paused certain operations on Thursday, the latest hit to the global supply chain. Even as Japan's consumer electronics supremacy waned, firms such as Murata (6981.T) ceramic capacitors and Sony (6758.T) image sensors have carved out a world-leading niche in highly specialized components. The manufacturing suspension comes after pandemic-related component shortages have slowed auto and electronics production worldwide.

An analyst at Ace Research Institute opinioned that an earthquake halting manufacturing would be a pure negative given that components are now selling as fast as they can be made. The 7.4 magnitude quake struck just before midnight on Wednesday east of Fukushima prefecture, the same area hit by Japan's most powerful earthquake 11 years ago. After a fire at its Naka factory in Ibaraki prefecture last year, Renesas (6723.T) became a supply chokepoint. 

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