Japan disaster could lead to shortage of electronic parts

According to market analysts at Isuppli, the earthquake and tsunami in Japan could result in significant shortages of certain electronic components, potentially causing pricing for devices to increase dramatically.

While there are few reports of actual damage at electronic production facilities, impacts on the transportation and power infrastructure will result in disruptions of supply, resulting in the short supply and rising prices.

Components impacted will include NAND flash memory, dynamic random access memory (DRAM), microcontrollers, standard logic, liquid-crystal display (LCD) panels, and LCD parts and materials.

Japan is also the world’s largest supplier of silicon used to make semiconductor chips — at about 60 per cent of the global total. If this supply is disrupted, this will also have an impact on discretes such as MOSFETs, bipolar transistors and small signal transistors.

However, the global supply chain has about two weeks of excess component inventory in the pipeline for semiconductor parts affected by the quake. Because of this, the shortages are not likely to appear until the end of March or the start of April. These shortages and their price impact are likely to linger until the third quarter, according to the research company.

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