Assessment of Japan Earthquake Impact on Semiconductor Industry

Published:2011/3/21 3:13:00 Author:Amy From:SeekIC

After 9M earthquake occurred in Japan, the semiconductor industry was slightly impacted, reported the statistics of IHS iSuppli. It was predicted that the output of Japanese semiconductor will be hindered in two weeks; panel firms was not affected directly but the capacity of LCD panel and related components were badly hurt.

According to the previous estimate by iSuppli, the revenue of electronic devices production in Japan accounts for 13.9 percent over the world in 2010 including PC, consumer electronics and communication equipments. The value of electronic devices produced in Japan would reach $216.6 billion while the global value would be only $1.6 billion over the same period.

The profits of consumer electronic products in Japan occupied 16.5 percent over the world and data processing was 10.2 percent in 2010. Japan was the fifth biggest semiconductor producer in the world and the profits of wafer enterprises located in Tokyo reached $63.3 billion, accounting for 20.8 percent in the world.

iSuppli indicated that the earthquake might not make a huge damage on semiconductor production equipment in Japan, but the supply chain can not avoid interruption. Semiconductor firms will face problems like hard to access raw materials, unable to distribute and delivery. IHS iSuppli estimated that in two weeks, the semiconductor’s output will get in stuck in two weeks.

With regard to wafer production process, Japan supplies 10 percent DRAM of the world’s total. The two major manufacturers of wafer Micron and Elpida did not get a much hit in the catastrophe.

The global market share of NANA Flash in Japan was 35 percent mainly for Toshiba. In term of global semiconductor production, the amount of enterprises which headquartered in Japan was in third place in 2010, and Asia-Pacific region excluding Japan was in the first place, the Americas in the second and Europe, Middle East and Arica was the fourth. Japan occupied 39 firms over the total amount 300.

The most serious damage might be LCD panel components production. Because Japan is the most important producer of panel parts in the world including glass, color filters, polarizers, cold cathode and LED, etc. The related integrated circuit is IT150-S.

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