The unfolding and ongoing rebuilding of Japan will affect
the global supply chain of semiconductors, however, to what extent and for how
long remain in the realm of speculation.
Much will depend on how quickly manufacturing in Japan can get back
online.
For companies that
escaped relatively undamaged from the earthquake and tsunami are facing serious
infrastructure issues: Shortages of
basic materials, such as, silicon for wafers and resins, revolving blackouts,
transportation disruptions, and employee absenteeism.
Malcolm Penn, chairman of Future Horizons speculates the
immediate impact will be on memory and memory prices are expected to double in
prices, but the full affect will be felt in about 3 months time. This is when reserve inventories will begin
to deplete, and the historic ramp up for the holiday season will begin. Capacity will unlikely be able to meet demand
at this point.
While the semiconductor tsunami flows, we must keep in sight
the human tragedy which is unfolding in Japan, and The Broker Forum encourages
all members to donate what they are able to the Japanese Red Cross
Society. Donations of aid can be made via Google’s
Crisis Response site.
Resources:
Impact of Japanese
earthquake on electronics industry, Evertiq, Mar 12
The looming
semiconductor tsunami: UPDATE, The Next Silicon Valley, Mar 17
Update: Analysts fear shortage of key resin, EE
Times, Mar 17
Long Pause for
Japanese Industry Raises Concerns About Supply Chain, The New York Times,
Mar 17
