EL SEGUNDO, CA -- Last Friday's earthquake won't have a major impact on Japan’s semiconductor production facilities, but will likely disrupt the supply chain.
The impact will be felt by suppliers, which are likely to encounter difficulties in getting raw materials supplied and distributed and shipping products out, research firm IHS iSuppli said.
Japan accounted for 13.9% of all global electronics equipment factory revenue last year, according to a preliminary iSuppli estimate. This includes manufacturing of all electronic equipment, including computers, consumer electronics devices and communications gear. Japan produced $216.6 billion worth of electronics equipment, out of $1.6 trillion worldwide.
As a result, iSuppli predicts "some disruption" in semiconductor supplies from Japan during the next two weeks.
By market, Japan last year accounted for
- 16.5% of global consumer electronics equipment factory revenue
- 20.8% of the worldwide semiconductor market (while not all of this actual production is located in Japan a large percentage is produced in manufacturing facilities in Japan).
- 10% of the worldwide DRAM manufacturing supply based on wafer production. The two major DRAM fabs in Japan, operated by Micron and Elpida, have not been directly affected, according to preliminary indications from iSuppli contacts.
- 35% of global NAND flash production in terms of revenue.
- Of the 300 semiconductor suppliers tracked worldwide by iSuppli, 39 are based in Japan.
- 6.2% of the world’s $86.3 billion in global production of large-sized (10" and larger) LCD panels in 2010. Only one large LCD fab may be in the zone of peripheral impact by the quake.
- A "very high share" of components used in LCD panels and LCD-based products, including glass, color filters, polarizers, cold cathode fluorescent lamps (CCFLs) and light-emitting diodes (LEDs).