Quake in Japan’s ‘Silicon Valley’ disrupts car, chip supply chains

The Kumamoto quake, which has killed at least 34 people, has stopped work in an area critical to Japan’s car and semiconductor industries

Tuesday’s 7.1-magnitude quake claimed at least 34 lives, ruptured roads and cut off utilities to thousands of households.

It also brought factories to a halt in an area critical to Japan’s auto industry and known as well as the country’s “Silicon Valley” due to its concentration of semiconductor firms.

While economists do not expect disruption on the scale seen after the 2016 quake, problems could persist for the likes of carmakers, where parts shortages can snarl production far and wide.

The carmaker said the decision for the suspensions was made in consideration of safety and the situation at distribution companies and suppliers.