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Japan earthquake disrupts factories and auto supply chains in key region

The 7.1-magnitude quake killed at least 34 people, ruptured roads, and forced some automakers to suspend production over safety and supplier distribution conditions.

Reported · Written up by our desk · Asia

A powerful 7.1-magnitude earthquake in southern Japan this week has highlighted vulnerabilities in the country’s manufacturing supply chains, according to coverage by Reuters.

The quake, which hit on Tuesday, killed at least 34 people, ruptured roads, and left utilities cut off to thousands of households. It also brought factories to a halt in a region critical to Japan’s auto industry and known as its “Silicon Valley” for its concentration of semiconductor firms.

While economists cited by Reuters do not expect disruption on the scale seen after a prior 2016 quake, issues could still linger for carmakers. Reuters noted that parts shortages can quickly slow production across wider supply networks.

Reuters also said a carmaker moved to suspend operations with the decision tied to safety considerations and the situation at distribution companies and suppliers.

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