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Quakes Potential Impact On CE Production: IHS iSuppli

3/11/2011 04:13:58 PM Eastern

New York - The massive earthquake that struck Japan on March
11 could have a far-ranging impact on the CE supply chain, said IHS iSuppli.

The research firm ran down a list of various products and
components made in Japan that could potentially be impacted by the earthquake
and subsequent tsunamis that have devastated parts of that nation.

From an industrial standpoint, the most critical impact
could be LCD TV production. IHS iSuppli said Japan makes a large number of LCD
TV components, such as CCFLs, LEDs and glass.

Other production areas that may be hit are DRAM and NAND
flash production and semiconductors.

"The major impact on Japan's semiconductor production is not
likely to be direct damage to production facilities, but disruption to the
supply chain. Suppliers are likely to encounter difficulties in getting raw
materials supplied and distributed and shipping products out. This is likely to cause some disruption in
semiconductor supplies from Japan during the next two weeks, based on
the IHS iSuppli preliminary assessment of the situation," the report stated.

Other notes.

  • Japan accounted for 16.5 percent of global consumer
    electronics equipment factory revenue in 2010.

  • Japan in 2010
    accounted for 13.9 percent of all global electronic equipment factory revenue.