Earthquake in Japan will have an Impact on the Component Industry

Thousands of Torii with stone steps, Fushimi Inari Taisha Shrine

Last Thursday, the Kumamoto prefecture experienced an earthquake of 6.4 magnitude. This was followed by a second earthquake of magnitude 7.3. Approximately 55 people have died from the quakes and over 1,000 people are reported as injured.

While the two quakes were serious, they were not as damaging as 2011’s earthquake and tsunami. But the earthquakes will have an impact on the electronics industry.

Kyushu island is located in the Kumamoto prefecture, and the island is home to a number of manufacturing companies, including Toshiba, Nissan, Kyocera, and Texas Instruments. Following the earthquakes, most manufacturing companies, including Toyota, Honda, and Sony, have already shut down their operations.

Analysts believe these events will not have a lingering negative impact on Japan’s economy, but most of the companies are expected to be closed for at least another week until the aftershocks have subsided and the damage has been fully evaluated.

Shortages are already predicted within the electronic component supply chain.

Located in the region is Sony’s Kumamoto Technology Center which is a major provider of CMOS chips. CMOS chips are used in smartphones, specifically the  Apple iPhone. The island’s Sony facility produces around 60% of the global share of CCD chips. Meanwhile, Renesas Electronics provides chips used in automotive applications, and Mitsubishi Electric provides power devices. Fujifilm Holdings provides components for digital display. Operations at all plants have been suspended. Mitsubishi has also suspended operations at an LCD parts facility and a semiconductor plant in the area.

Are you an OEM or a CM that relies on components produced by at least one of these companies? Analysts are predicting that there may be temporary shortages following the temporary factory closings.

Luxe Electronics is located in Amesbury, MA and is an electronic component distributor. If you are facing any supply chain issues – shortages, hard-to-find parts – let us know.

click for rfq

Sources used:

Computer World

Electronic Purchasing Strategies



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