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Kyushu Japan Earthquake influence on Semiconductor Equipment Manufacturing Vol.2

April 19, 2016

Doc. No.: SPE160419E

In addition to the magnitude 6.5 earthquake which struck Kumamoto City, Kyushu Region on the evening of April 14th with continuing foreshocks, from the early morning of April 16th, large-scale magnitude 7.3 earthquakes with epicenters in the Kumamoto and Oita Regions have occurred in succession.
I herein report as a follow-up on our key component supplier situation and influence on our product and parts shipments as of 4:00 pm Japan standard time, April 19th.

1. Reconfirmation of Company Facilities and Employee Impact

We have re-confirmed, after the largest earthquake on April 16th, that there are no employee injuries or facilities damage at our company, as well as at our two primary manufacturing locations (Hikone and Taga operations). Likewise, we have also confirmed no facilities damage or employee injuries among our group companies in Central & Northeast Japan (Kinki, Hokuriku and Tohoku Regions).

However, our equipment service group company, SEBACS, reported that their Kumamoto Service Station (Kumamoto Prefecture in Kyushu Region) had some building damage, but no human injuries.

2. Situation of our Key Component Suppliers in Affected Area

We have identified 3 key component suppliers having their manufacturing bases in the Kyushu disaster area (Kumamoto Prefecture and Oita Prefecture) whom we have dealt with as primary source suppliers. Regarding those suppliers, we have confirmed that some of their facilities have sustained damage, but no employee injuries have occurred at their manufacturing bases. Among those 3 suppliers, we have concluded that there may be a slight delay in their parts supply recovery. This is due to the delay of recovery work for social and business infrastructure, such as electricity and water supplies, as a result of the continuing aftershocks hitting there. We purchase processed resin goods and gas flow control products from those 3 suppliers. During our investigation of those 3 suppliers located in the disaster area, we have also confirmed that those suppliers have alternative manufacturing facilities outside of the Kyushu area, thus the influence on our equipment production is limited.
We will keep investigating the influence to our products while monitoring the situation of those 3 suppliers at the disaster area.

3. Screen Product Shipment Status

We have re-confirmed as of April 19, 4:00 pm (Japan standard time) that there will not be any delays in our product manufacturing or scheduled shipments through April 30th as a result of the earthquakes to date.


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Information contained in the news letter are current on the date of publication, but may be subject to change without notice.