Earthquake’s Influence on Global IT Industry

Published:2011/3/18 3:35:00 Author:Amy From:SeekIC

As far as we can see, severely damaged fundamental facilities will obstruct the supply of PC equipments. But the global chain storage can remain two weeks, so real shortage and rise in price will not occurred until April lasting into the third quarter of this year. In addition, semiconductor was in high storage before the quake, so it will postpone the situation of shortage.

Due to the psychological impact by catastrophe, presently the price of high-end flash memory has increased by 10 percent. But in OEM market, the contract price of RAM is expected to be in stability. While in spot market, the price is floating and upswing 7 percent. It is predicted that slight increase for price is possible as contract renegotiation started.

The second largest flash memory manufacturer Toshiba believes that the production volume in central Japan will lower than 20%, but the gap will be filled by Samsung to meet the demand for panel for iPad 2 as in case.

With regard to small and medium display, the production lines of Hitachi got significant influence by the quake and have closed. Besides, electrical shortage will still reduce the capacity. If the present situation does not change, the supply of Nintendo DS game system and display for LG mobile devices will get in stuck.

The six generation LCD in Panasonic did not get badly hit, but electricity shortage will cause volume shrink and impact on Panasonic TV and prices of some Chinese brands.

According to the analysis from iSuppli, electricity shortage caused by earthquake and tsunami will have significant impact on global electronic accessory supply and boost prices of some devices in short-term. Therefore, the production capacity of flash memory, RAM, microcontroller, LCD panel and accessory will surly slip down by reason of power shortage and traffic interruption.

As the largest supplier of silicon, Japan provides 60% consumption in the world. There is no denying the entire IT industry will get hard hit if its capacity slips. The related integrated circuit is KDS200.

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