Japan was hit by two major intensity earthquakes in 2011 and 2016, respectively, and the two sudden natural disasters caused a large degree of impact on the Japanese and global automotive supply chain.

    The Japanese auto industry was the first to be hit by the 9.0 magnitude earthquake that struck northeastern Japan in March 2011 and triggered a tsunami and nuclear leak crisis. Toyota, Honda, Nissan, Mitsubishi and other automakers temporarily closed local factories, while the damage to nuclear power plants put Japan's power supply under enormous pressure.

    Japan is a major producer of automotive electronic chips, the chip as part of the key components of the supply chain is blocked, the global automotive companies have suffered some impact on manufacturing. A number of German car manufacturers had to suspend production, the United States Ford Motor due to the shortage of parts supply in Japan, slowed down or suspended production activities in the Asia-Pacific region. It is worth noting that the relevant electronic chips for South Korean car companies are supplied by the country, so the impact is less.

    Similarly, the 7.3 magnitude earthquake in Kyushu, Japan, in April 2016 led to the suspension of production at the local Renesas integrated circuit plant. Renesas Technology is one of the world's top 10 semiconductor chip suppliers, Kyushu plant shutdown directly affected the use of its integrated circuits to produce dashboards and other control systems for automotive Tier 1 suppliers, followed by Volkswagen, General Motors, Ford corresponding models were forced to stop production. At the same time, Japan's famous precision instrument maker Aisin Seiki subsidiary and other suppliers shut down due to the earthquake, resulting in the Toyota car assembly plant shut down one after another due to the unavailability of chips for key components.