tsunami alert: kamchatka quake rocks pacific, chip industry braces
tokyo, Wednesday, 30 July 2025.
A magnitude 8.7 earthquake off Kamchatka triggered tsunami warnings across the Pacific. Japan ordered evacuations for two million people. The quake’s impact could ripple through the semiconductor industry. TSMC and other firms face potential disruptions. Transportation and infrastructure damage may impede chip manufacturing. The Fukushima nuclear plant was temporarily shut down. The Kamchatka quake is the largest since the 2011 Tohoku earthquake.
broader market impact
The Tokyo stock market experienced mixed trading as investors assessed the impact of the earthquake and tsunami warnings [7]. The Nikkei average showed a seesaw pattern, initially rising due to bargain hunting after a three-day decline of over 1100 yen [7]. However, profit-taking on some semiconductor stocks that had previously announced upward revisions in earnings forecasts tempered gains [7]. The morning session closed with the Nikkei up 7.59 yen at 40,682.14 yen [7].
transportation and industrial disruptions
The earthquake has caused significant disruptions to transportation networks [1]. Three highway sections are closed, and 41 railway lines have suspended operations [1]. Sendai Airport in Miyagi Prefecture has halted all runway operations, impacting air travel [1]. These disruptions could impede the movement of materials and finished goods, creating bottlenecks in the supply chain for semiconductor manufacturers and other industries [alert! ‘Magnitude of impact on supply chain not specified in source.’].
tsunami’s reach and responses
Tsunami warnings cover a wide area of the Pacific coast, with waves up to 3 meters expected in regions including Hokkaido, Iwate, and Fukushima [1]. As a precaution, Tokyo Electric Power Company (TEPCO) stopped the release of treated water from the Fukushima Daiichi nuclear power plant [1]. Over 1.9 million people in 207 municipalities across 21 prefectures have been issued evacuation orders [1]. The Japan Meteorological Agency has cautioned that high tsunami conditions could persist for at least a day [1].
semiconductor sector outlook
Despite the potential for short-term disruptions, the semiconductor sector remains robust due to strong demand related to artificial intelligence (AI) [3][4]. Advantest, a key player in semiconductor testing equipment, recently raised its consolidated operating profit forecast for fiscal year 2026 by 31.5% to 300 billion yen, driven by growing demand for advanced AI-related semiconductors [5]. This positive outlook may help to offset some of the negative sentiment caused by the earthquake [alert! ‘No sentiment data provided.’].
samsung’s strategic move with tesla
In related news, Tesla has entered into a significant semiconductor supply agreement with Samsung Electronics, valued at $16.5 billion USD (approximately 2.4 trillion yen) [4]. This deal could help Samsung reduce its losses, which exceeded 550 billion yen in the first half of the year, and strengthen its position against competitors like TSMC [4]. The agreement allows Tesla to participate in maximizing manufacturing efficiency, indicating a close collaboration [4].