Quake halts output at Toshiba chip plant

An earthquake in Japan could be the latest headache for the global chip industry.

Toshiba has suspended operations at a plant in southern Japan after a strong quake hit the area.

The tech giant made the announcement Monday (January 24).

The facility in Oita makes semiconductors used in cars and industrial machinery.

Toshiba said some equipment was damaged and it was still analysing the impact on production.

The company does not yet know when it can restart production and aims to give an update on Tuesday (January 25).

Toshiba also makes similar chips at a factory in northern Japan.

But the new closure could be yet another setback for companies recovering from two years of global chip shortages during the health crisis.

Automakers and the tech industry have seen major delays and cuts to production as a result.