Strong earthquake in Japan affects China's electronic information industry

A magnitude 9.0 earthquake occurred in Japan. The earthquake has brought a huge impact on the Japanese economy, and it also has a certain impact on China's information technology industry.

Since the epicentre of the earthquake was relatively close to Miyagi Prefecture and Iwate Prefecture, where Japanese semiconductor manufacturers were concentrated, several well-known Japanese electronics companies, including Sony, Toshiba, and Matsushita, had closed their factories. Experts believe that due to this adverse impact, it is expected that short-term memory chips, LCD panel components, etc., will be temporarily out of stock, which will adversely affect the global electronics industry.

Analysts indicated that many of the upstream raw materials and key components used in domestic electronic information products are mainly imported from Japan. If the production of Japanese related manufacturers is seriously damaged or roads and other transportation conditions are difficult to recover in the short term, there may be supply shortages.

Statistics show that from January to September 2010, China’s products imported from Japan accounted for 6.5% of Japan’s total exports to China (the fourth largest category of products). The earthquake affected Japan’s digital industry. Cameras, digital video cameras and related core components industries have caused serious impact. The prices of digital cameras and video cameras in the Chinese mainland market may rise sharply due to insufficient supply, while digital cameras and video camera manufacturers in mainland China will also suffer from shortages of CCD and other core components. Production difficulties have arisen.

It is reported that China's production of mobile phones, LCD TVs, computers, monitors and other major electronic products, large output, many of which are key upstream raw materials and components imported from Japan. For example, liquid crystal materials, glass substrates, and polarizers used in liquid crystal panels are basically imported from Japan. Micro-motors used in products such as mobile phones, ceramic powder and aluminum foil needed for resistance must be imported from Japan. The earthquake has a great impact on the Japanese semiconductor industry, and has a medium or small impact on the panel industry, electronic materials and other industries. However, due to the relatively large scope of traffic, electricity, etc., the supply to the Chinese mainland may still be relatively large in the short term. Affected, downstream manufacturers may be forced to find alternatives or reduce production.

"The earthquake was mainly to adversely affect the Japanese NAND-Flash and CMOS camera industry, because Toshiba's factory was damaged and it is estimated that the chip will rise in price next time," said Gu Wenjun, a senior analyst at iSuppli in China. He believes that the main impact of the earthquake on Japan's semiconductor production may not be direct damage to production facilities, but the interruption of the supply chain. Suppliers may encounter difficulties in obtaining raw material supply, distribution, and delivery, and it is expected that the semiconductor supply in Japan will be disrupted in the next two weeks.

Yang Yunjiao, China plane display manager of the International Semiconductor Equipment and Materials Industry Association (SEMI) believes that as long as it is related to Japanese panel makers, both upstream and downstream will be affected by the earthquake. The affected area is Toshiba’s manufacturing base, and the manufacturing business involves memory and display imaging components, both of which are core components of the end product. The resulting reduction in terminal production will indirectly affect the purchase of display panels and modules.

According to a Sony China middle story, the area around Sendai and Fukushima near the earthquake center is a gathering place for Japanese semiconductor manufacturing plants, and the impact is relatively large. So Sony's six factories in the above areas have all been closed down.

A R&D executive from Japan's Matsushita Plasma Display Co., which often goes to Japan, pointed out that the Japanese companies headquartered in Tokyo were affected greatly, such as Asahi Glass and Sony. However, Panasonic Plasma Factory and Sharp's 10th-generation panel plant are all located in Osaka, which is far from the earthquake center, so the impact should not be too great. "Asahi Glass is one of the world's three largest LCD panel substrate glass manufacturers, and it should affect the LCD panel market in the short term." A high-level TV manufacturer in Shenzhen said that "in the short term, there will be some logistics problems in the products from Japan, and directly affect Sharp. The supply of large and medium-sized LCD panels. Because the supply of LCD panels in the last two quarters is just a bit surplus, so the overall Japanese earthquake will not have any impact on the LCD TV market."