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HomeDigit NewsToshiba halts production at Japan's chip plant after earthquake

Toshiba halts production at Japan’s chip plant after earthquake

Toshiba has halted operations at Oita’s chip manufacturing plant in southern Japan. There was a major earthquake in the region last weekend. The plant manufactures semiconductors used in cars and industrial machinery. The company said in a statement on Monday that the earthquake caused damage to some equipment and the impact on its production is being assessed.

System LSI chips are made in this plant, about 60 percent of which is sold to car makers and industrial machinery firms. Toshiba Electronic Devices and Storage spokesperson Told That right now it cannot be said by when the production can be resumed. The company also manufactures LSI chips at a plant in northern Japan. Apart from this, it also manufactures devices in collaboration with other local companies like Renesas Electronics.

Automobile companies have been facing difficulties since last year due to shortage of semiconductors. Due to this these companies have also had to cut production. Due to reduced supply of semiconductors, many global automobile companies are producing at low capacities. Indian companies like Tata Motors have also had to reduce production from this. This has had an impact on the delivery of cars to the customers. This has resulted in delays of several months in the deliveries of some popular models of cars.

India to increase manufacturing of semiconductors Plan has created. The central government has approved an incentive scheme of 10 billion (about Rs 76,090 crore) for this. Under this scheme, up to 50 percent of their project cost can be provided by the government to the semiconductor and display manufacturers as financial assistance. Israel’s Tower Semiconductor, Taiwan’s Foxconn and a Singapore-based company want to set up chip factories in India. This plan to encourage semiconductor manufacturing comes at a time when automobile and tech companies around the world are battling chip shortage. The government has also approved an incentive scheme to help local companies working on integrated circuit and chipset design.


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