Thanks Jim for the informative article about the impact of Japan's Earthquake on eletronics market. The damage caused by the earthquake is very extreme. As there is huge power supply loss, the electronic manufaturing companies will rollback all their operations. I hope it may take couple of months to get back to normal track.
Very informative, and sobering, report. NPR reported that the explosion at the nuclear power plant was a result of loss of coolant in an on-site nuclear waste container, but that the reactors had been shut down prior to the tsunami. There was a critical mass that melted down, and if the melt-down was arrested somehow, that's good news, but theoretically cooling a meltdown is a next to impossible engineering feat. Meanwhile on the US west coast, the suspended isotopes are projected to make landfall, and we're watching the effects without much of a contingency plan. Germany has taken an undeniably prudent step with their nuclear program and a like action on the part of the US government is forthcoming.
In My experience working with companies on the semiconductor and IC area, Companies are well protected with a huge safety stock, either at the wafer or FG level, some companies are still running with IC's obsolete even five years ago, based on what I learned few days ago only 20% of the semiconductor industry of Japan is placed on the areas affected by the tsunami and been witness of their fast recovery I have no doubt they will survive this terrible natural disaster.
After the second WW Japan invested more than 100000 million dollars to get back on track, it's too early to talk about recovery for them when they still have small after wakes and this was 5 times severe as their previous catastrophe.
I think decrease in production and fluctuation in prices will come as tsunami waves hopefully not so dynamic but also devastating to the worlds economy. The time of recovery from the massive devastation counts as a production down time. Rolling blackouts will have longer impact because repairing nuclear power plants will take longer. Transportation infrastructure by railways, roads and airports is highly damaged affecting vast portion of northern Japan. While Japan consumes many electronic components they export huge number in final products to the world market. It is possible that European countries, US and other nations would take manufacturing of critical components away from Japan, or Japanese companies would invest outside Japan. All that depends on recovery time to be estimated within next few weeks.
This is such a torching article. The electronics and IC Market will definitely feel this.
What matters now is international rescue for quick recovery of Japan.
It is good to hear that the central bank is willing to inject $182 billion into money markets to stabilize the financial system and that eighty-eight governments and six international institutions have offered assistance with recovery efforts.
Should we expect increase in price of elctronics from Japan for the time being?
Decrease in production which may eventually lead to increase in price?
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.