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Japan Supply Chain Update

In the wake of the devastating quake in Japan, we are all very saddened by these tragic events and our hearts go out to the people of Japan with our most sincere condolences.

Although it is still unclear the total impact these events will have on the electronic supply chain, it is evident that we will likely all feel the effects in some way. Japan currently accounts for over 20% of global semiconductor production and there are already several reports of shortages and production halts. At SolTec Electronics, we are monitoring the situation very closely and are here to help our clients in any way.

We wanted to share with you all a few updates that we have received:

• Silicon wafer fabs, Shin-Etsu Semiconductor and SUMCO have received damage of their production lines & the power outage has forced the production to come to a stop. The traffic for areas east of Kantō has also been affected. As a result, the supply for silicon wafer will drop significantly, which will cause the global semiconductor players outside of Japan to compete for material.
• Texas Instruments’ manufacturing plant in Miho, Japan, which is responsible for 10% of TI’s outputs, has been significantly damaged, including work in progress. It will likely take until September to get these plants running back at full production. This will likely cause pushed out lead times for TI products, especially DLP and Analog.
• Samsung & Hynix have stopped providing spot pricing for now as they wait to assess the current situation
• Renesas has temporarily shut down production at 7 out of 22 plants
• DRAM production has been affected, especially for PC & system manufacturers
• Hitachi & Panasonic LCD fabs have both been impacted, at least temporarily

• Murata has announced that three of their facilities have been affected by the quake. Affected product lines include: EMI Supression Filters, Coils, Piozelectric Products, Saw Filters, & Polymer capacitors. Murata has not yet commented on the estimated time line on the restoration process, but, at the very least, some production halt should be expected in the short term. We will continue to monitor & update as available.

“Component shortages, caused by the Japanese earthquake, are not likely to appear until the end of March or the start of April, but the shortages and their price impact are likely to linger until Q3,” according to a report from US analysts iSuppli.

If any of the above components are needed for your Q2 and Q3 production, it is a good idea to look ahead and do some “emergency” material analysis and planning to ensure that these material shortages and temporary production halts have a minimal impact on your own production line. We offer our services to you as an extension of your team and have powerful processes and software in place to help you procure even the most difficult components. If we can help in any way, please do not hesitate to contact us.

As we come across additional updates, we will post them here. We also welcome you all to use the comment feature on to share an additional updates you have come across and/or to share any other feedback. We look forward to serving you soon.

Our deepest & most sincere condolences go out to the people of Japan in the wake of the recent tragic events there. We have donated to the Red Cross to help with relief efforts & encourage others to do the same, if at all possible.

SolTec Electronics
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321-978-0228 Fax
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© 2011 SOLTEC ™ Electronics, LLC (a Florida Limited Liability Company). ALL RIGHTS RESERVED. This material may not be reproduced in any form whatsoever without express written consent of SOLTEC. SOLTEC monitors and vigorously enforces their rights to SOLTEC-owned intellectual property, including but not limited to the contents of this article.

1 Comment

One Response to Japan Supply Chain Update

  1. Awesome article. Keep it up.

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