Quake suspends firms' output of chips
By Zhu Shenshen |
March 15, 2011, Tuesday
|
Print Edition
Print Edition
CONSUMERS in China have to pay more or wait longer to get their electronic gadgets after the earthquake in Japan last Friday forced several firms to halt production of key components, industry officials said yesterday.
The magnitude-9 quake caused output to stop at many Japanese-based firms, including Toshiba, Nikon, Sony and Sharp, which play key roles in the global electronics industry chain, industry insiders said. The quake has also lifted prices of memory chips.
"The chip plant production will continue to be suspended due to lack of power and (poor) logistical conditions. Therefore, it will cause a supply shortage of memory chips and push prices higher," said Gu Wenjun, an analyst at iSuppli, a United States-based research firm.
The memory chips are used in electronic devices, including smartphones and tablet computers like the iPad, and chip production requires exacting standards of power consumption and clean air conditions. The cut in power supply and poor logistical conditions following the quake will stay for some time, industry watchers said.
Toshiba, the world's No. 2 flash memory chip maker, accounts for more than one-third of the world's memory chip market. By the end of the first quarter of 2010, Toshiba held 33.8 percent of the global flash memory market, second only to Samsung's 38.5 percent, according to iSuppli. Toshiba is also a major chip supplier for Apple's iPad.
Apple, which released the iPad 2 in the US last Friday, said the device will be delivered three to four weeks later than expected, its online store indicated on Sunday.
The magnitude-9 quake caused output to stop at many Japanese-based firms, including Toshiba, Nikon, Sony and Sharp, which play key roles in the global electronics industry chain, industry insiders said. The quake has also lifted prices of memory chips.
"The chip plant production will continue to be suspended due to lack of power and (poor) logistical conditions. Therefore, it will cause a supply shortage of memory chips and push prices higher," said Gu Wenjun, an analyst at iSuppli, a United States-based research firm.
The memory chips are used in electronic devices, including smartphones and tablet computers like the iPad, and chip production requires exacting standards of power consumption and clean air conditions. The cut in power supply and poor logistical conditions following the quake will stay for some time, industry watchers said.
Toshiba, the world's No. 2 flash memory chip maker, accounts for more than one-third of the world's memory chip market. By the end of the first quarter of 2010, Toshiba held 33.8 percent of the global flash memory market, second only to Samsung's 38.5 percent, according to iSuppli. Toshiba is also a major chip supplier for Apple's iPad.
Apple, which released the iPad 2 in the US last Friday, said the device will be delivered three to four weeks later than expected, its online store indicated on Sunday.
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