Aftershocks

With the clean up following the Japanese earthquake well underway, the electronics industry is turning its attention to the potential effects of the natural disaster. At the top of the list of concerns is the effect on the global supply chain – and not just for the electronics industry; stock markets around the world slumped last week over fears about the ramifications for manufacturing industry's recovery. At the time of writing, most companies were assessing damage to their various plants. But an early indication of problems came when TI said its Miho fab – which generates 10% of its revenues – would be out of action until July. Renesas had seven plants shut down and other companies told similar stories. Leaving aside the production implications, there's a logistical problem. If there are components at the plant, they can't be shipped and raw materials can't be delivered: stand by for component shortages. Market watcher IHS iSuppli says the effects of this could linger on into the latter half of the year. While Japan doesn't have the electronics reputation it once did, it is still a major cog in the global wheel – more than 20% of all semiconductors are made in Japan; it's a leading manufacturing centre for consumer electronics; and a powerhouse when it comes to lcds. It's no surprise there will be knock on effects. New Electronics offers its sympathy to all those affected by the disaster – while the electronics industry may return to normal in time; their lives probably won't.