Japan shortage

Prices for Electronic Components in Japan Could Increase Because of Shortages

A research firm said that as strongest earthquake of Japan leads to possible shortages, costs of electronics components from memory chips to liquid-crystal displays and microcontrollers may increase “dramatically.”

Research firm HIS ISuppli said in a declaration that they are expected to face troubles with power shortages and carrying their products while only a little part manufacturers have reported physical damage at plants.

HIS ISuppli said shortages are not expected to happen until the part of this month on early April for the reason that the worldwide supply series has around two weeks of surplus inventory.

Japan shortage

The research said the world’s largest supplier of silicon used to create semiconductors, is previously have an effect on pricing of components such as NAND flash memory chips due to the psychological impact of the tragedy in Japan. The world’s second-biggest manufacturer of flash-memory chips, Toshiba Corp. (6502) said yesterday it stopped five factories because of power outages and closed one plant for the reason of the damage from the March 11 earthquake.

Researcher said, damage was insignificant at facilities of most Japanese component creators as they were situated away from the epicenter of the quake. It said, companies are facing troubles in obtaining steady power supply, shipping components, getting raw materials and getting workers to facilities.

ISuppli said, delivery of panels of Hitachi Ltd. (6501) utilized in Nintendo Co.’s DS handheld video-game players and LG Electronic Inc. (066570) ‘s mobile phones perhaps affected it its display factory is close for a month or more.

The company said, Hitachi stopped six factories creating products ranging from home appliances to power-generating facilities for the reason of damage stemming from the earthquake.

photo credit: heraldonline.com

One thought on “Prices for Electronic Components in Japan Could Increase Because of Shortages

  1. I think it is a bad news for electronic engineers if electronic manufacturer in Japan increase the price of their electronic components. Although Japan is the number one source of active components in the world of market.
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