In the past few days, the western part of Japan has suffered from heavy rains which caused by typhoon. According to Japanese media reports, the heavy rain has caused the worst floods in Japan in the past 20 years, and the most affected areas include Fukuoka, Hiroshima, Okayama, Kagoshima and other places.

Kyushu Island (Fukuoka, Kagoshima belongs to Kyushu Island), which is the closest to the Japanese flood, is an important base for the Japanese semiconductor industry. According to the data, as of 2005, there were more than 600 semiconductor companies in Kyushu Island, Japan. Kyushu has a well-established semiconductor industry chain, including raw material manufacturers, IC design, manufacturing, packaging and test equipment, companies including the global giants like Sony, NEC, Renesas, Hitachi, Toshiba, TEL and ULVAC.

According to past industry experience, as long as disasters occur in areas where the semiconductor industry is concentrated, it will lead to a global supply chain reaction. For example, the Japanese tsunami in 2011 and the floods in Thailand, these two disasters led to the price increase and shortage of electronic components and hard drives. Although the Japanese media has not publicly reported on the disaster of the semiconductor industry in the flood, according to industry estimates, the flood may not cause major losses for semiconductor companies, but it will definitely affect a certain link in the supply chain, resulting in a decrease in production capacity, but according to current observations, there is very little chance of a situation similar to 2011.