Japan Quake Disrupts Auto and Chip Supply Chains as Death Toll Reaches 34

KUMAMOTO, Japan, July 31 - A strong earthquake that hit southern Japan this week has highlighted the fragility of the country’s manufacturing supply chains, a decade after a destructive quake in the same region caused major industry disruption.*

Tuesday’s 7.1-magnitude quake killed at least 34 people, damaged roads and cut off utilities for thousands of households.

It also halted factory operations in an area vital to Japan’s auto sector and often called the country’s “Silicon Valley” because of its high concentration of semiconductor companies.

While economists don’t expect disruption on the level seen after the 2016 quake, issues could continue for automakers, where component shortages can disrupt production widely.

Toyota, for instance, has paused output at three plants in Fukuoka, north of Kumamoto, through Aug. 5, while even one of its facilities in Aichi — more than 600 km (about 400 miles) from the disaster area — will be idle next week.

A Toyota spokesperson said the suspensions were decided with safety and the situation at distribution companies and suppliers in mind.

The company said in a statement Thursday that it was preparing to resume production "step by step on lines where safety and quality can be verified." It has not yet determined when full operations can restart.