Japan Quake: Experts See Minimal Silicon Wafer Impact

On January 1st, Japan's Ishikawa Prefecture, specifically the Noto region, experienced a seismic event registering 7.6 on the Richter scale, impacting various parts of the country. In response, the Japan Meteorological Agency issued a tsunami warning for coastal areas along the Sea of Japan. Notably, the seismic disturbance has prompted a detailed evaluation of the manufacturing capabilities of Shokoh, a prominent Japanese silicon wafer producer. Shokoh's production facilities are strategically distributed across Japan, with key sites in Kyushu, Yamagata Prefecture, and Hokkaido – four, one, and one facilities respectively.

Importantly, among these facilities, the Yamagata Prefecture plant is situated in an area experiencing seismic intensity of 2-3, while the remaining five plants in Kyushu and Hokkaido are located in regions unaffected by the earthquake. Insights from industry experts within the electronic components domain suggest that the seismic activity is expected to have minimal impact on Japanese silicon wafer production capacity and is unlikely to disrupt the global supply-demand equilibrium for silicon wafers.

Earlier assessments from Semiconductor Equipment and Materials International (SEMI) indicated a projected 14% decline in global silicon wafer shipments for 2023. In terms of area, global wafer shipments reached a historic pinnacle of 145.65 billion square inches (BSI) in 2022, forecasted to decrease to 125.12 BSI in 2023.

Projections from industry analysts foresee a compelling 8.5% rebound in global silicon wafer shipments in 2024, driven by escalating demand for silicon chips in key sectors such as artificial intelligence (AI), high-performance computing (HPC), 5G, automotive, and industrial applications. This positive trajectory is anticipated to extend until 2026, with shipments expected to surpass 162 billion square inches.