Japan part makers halt operations

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After an earthquake rattled Japan’s northeast, Renesas Electronics Corp, Murata Manufacturing, Sony Group Corp, and other precision components producers paused some operations on Thursday, the latest hit to the global supply chain.

Even as Japan’s consumer electronics dominance waned, firms like Murata and Sony carved out a world-leading niche in highly specialised components like ceramic capacitors and image sensors.

The manufacturing suspension comes after pandemic-related component shortages have already slowed auto and electronics production around the world.

“An earthquake halting manufacturing is a complete negative given that components are presently selling faster than they can be manufactured,” said Hideki Yasuda, an analyst at Ace Research Institute.

The 7.4 magnitude quake occurred just before midnight on Wednesday east of Fukushima prefecture, the same location as Japan’s largest quake 11 years ago.

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