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Tuesday, 15 March 2011 10:28

Japan quake pushes chip prices higher

Written by


Global manufacturing chain disrupted
Last week’s tragic earthquake off Japan’s eastern seabord is expected to have lasting effects on the global chip manufacturing chain, resulting in higher prices.

According to Reuters, dozens of Japanese manufacturers are struggling to cope with the damage and many plants are still offline. While damage to some plants might appear to be superficial, clean rooms and other high tech facilities simply cannot be designed to cope with such violent events. In addition to damage inflicted to companies themselves, the quake has also caused extensive damage to the country’s infrastructure, everything from roads and railways, to Japan’s battered power grid.

iSuppli believes the aftermath of the quake will be felt for months, particularly in NAND and DRAM markets. Although there were few reports of actual damage to production facilities, iSuppli believes the disruption caused by infrastructural damage will result in short supply and big price hikes. Even a two-week disruption to shipment schedules would continue to impact prices until Q3.

Japan is home to about one-fifth of the world’s semiconductor plants and it churns out about 40 percent of the world’s flash memory.

More here.

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Comments  

 
-30 #1 TechHog 2011-03-15 13:15
This article is in pretty bad taste. Thousands dead or injured, many more homeless or unemployed, and you think that chips matter? I don't think so, at least not this early on.
 
 
+38 #2 123s 2011-03-15 13:33
This is a tech site, what do you expect ?
 
 
+6 #3 Reavenk 2011-03-15 16:57
This was expected from the start. Anyone who didn't see this coming is way out of touch with the global role Japan plays for electronics.

And this isn't in bad taste, analyzing the aftermath and spreading awareness in every aspect and degree isn't in bad taste. Gilbert Gottfried's comments on the quake, now that's an example of bad taste.
 
 
+5 #4 rickster 2011-03-15 23:18
Quoting TechHog:
This article is in pretty bad taste. Thousands dead or injured, many more homeless or unemployed, and you think that chips matter? I don't think so, at least not this early on.


Please be aware of your surroundings. Otherwise, you'll just make yourself like a moron.

Everyones well aware of the tragedy from this event. A tech site reporting the ramifications of the event on a market that directly effects many of the viewers here...yeah, that's ridiculous. Completely out of line.

Get your head out of your ass.
 
 
+8 #5 TechHog 2011-03-16 03:12
Interesting...

Okay, I take it back.
 

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