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Japanese earthquakes could damage IT supplies

by on18 April 2016


Sony plant damaged

The two major earthquakes rocked southern Japan this week damaging Sony's image sensor plant.

Sony will close this location down while it undergoes damage assessment. This factory produces components for smartphone makers, including Apple, which uses them in its iPhone. Another image sensor plant in Nagasaki will be temporarily taken offline.

Sony maintains about 40 percent of the market for complementary metal-oxide semiconductor (CMOS) image sensors. These integrated circuits convert light into electric signals, and when used in smartphones, convert images into digital data. They are a crucial part of modern mobile device construction as well as digital cameras. Samsung cites its diversified supply chain, stating that its flagship phone production will not be affected by the impact of the quakes.

Sony is hopeful that there will not be any immediate supply disruption, as it is sitting on some inventories at the moment. It promises to make an announcement if anything gets wors. The spokesman added that operations should continue once the aftershocks subside.

“We are still checking for potential damage to the plants, which usually operate on a 24-hour basis,” he said. We should have more updates early this week.

The BBC reported that 41 people were killed in the quakes and 11 are still missing. More than 180,000 people were left to seek shelter, 62,000 homes have no electricity, and 300,000 homes are without water.

 

Last modified on 18 April 2016
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