Taipei, Thursday, October 2, 2014 00:10 (GMT+8)
mostly cloudy
Taipei
25°C
Digitimes Insight: Japan quake likely to cause major disruptions to auto supply chain
Tony Huang, DIGITIMES Research, Taipei [Wednesday 23 March 2011]

The earthquake and tsunami in northeastern Japan, the area where the country's major car and parts manufacturing is, will likely cause significant disruptions to the auto industry's global supply chain.

Japan accounts for more than 30% of total car production worldwide. Earthquake-related closures at several auto and related assembly plants in Japan could have a significant impact on global car supplies.

Alps Electric, among the major car-use electronics device suppliers, has had to shut down operations at its plants in the Tohoku region due to electricity and water shortages.

The supply of automotive chips is also being affected by the earthquake and its aftermath. Semiconductors used in automotive applications, such as microcontroller units (MCU), usually require a longer period of time for validation. Besides, they are made specifically to customized requirements. Because of such specific needs, car vendors do not have many multiple sources to choose from.

Three Japan-based firms are ranked among the worldwide top-10 automotive semiconductor companies, and those have all seen their production disrupted by the recent crisis in Japan.

Renesas Electronics, Japan's largest supplier of semiconductors to the automotive sector, still has six factories which remain closed. Among the facilities, its Naka factory (Ibaraki Pref.) makes car-use MCU products. The other plant that also manufactures MCUs for automotive applications, Renesas Northern Japan Semiconductor (Aomori Pref.), is being shut down due to partial damages to buildings and power shortages.

Fujitsu also reported that damages to buildings and production equipment at its plants in Iwate, Miyagi and Fukushima prefectures. The amount of losses and effects on profits as a result of the earthquake are still unknown, according to its latest update.

JEITA: Production value of Japan's and worldwide electronics components, 2008-11 (JPY million)

Source: JEITA, compiled by Digitimes, March 2011

Realtime news
  • Percentage of 5.5-inch smartphone panels shipped to China increasing

    Displays | 1h 30min ago

  • Touch panel makers see shipments for thin-film touch panels increase

    Displays | 3h 20min ago

  • Mobile payment company Alliance Digital Tech to come online by year-end 2014

    Before Going to Press | 1h 42min ago

  • Leadtek unveils wearable device for healthcare

    Before Going to Press | 1h 42min ago

  • BLU makers Forhouse, BriView complete merger

    Before Going to Press | 2h 39min ago

  • Japan Patent Office to cut examination process to 5 months

    Before Going to Press | 2h 40min ago

  • Digitimes Research: Spotify to affect Japan Internet music service industry

    Before Going to Press | 2h 48min ago

  • iPhone 6 Plus to account for 60% of total iPhone 6 device shipments

    Before Going to Press | 2h 49min ago

  • Digitimes Research: ARM Mali to become mainstream GPU architecture for China APs in 2H14

    Before Going to Press | 3h 4min ago

  • Quanta Changshu plants preparing for Apple Watch mass production

    Before Going to Press | 3h 36min ago

  • Leadframe maker Jih Lin to post EPS of NT$3 in 2014

    Before Going to Press | 3h 46min ago

  • New Wintel platforms may impact 4Q14 PC demand

    Before Going to Press | 3h 52min ago

  • ARM to set up IoT business unit

    Before Going to Press | 3h 53min ago

  • Taiwan market: Chunghwa Telecom to launch NFC mobile payment services

    Before Going to Press | 4h 11min ago

  • Windows 10 expected to have limited effect on boosting notebook demand

    Before Going to Press | 4h 15min ago

  • Samsung to host Tizen developer conference in China

    Before Going to Press | 4h 19min ago

Pause
 | 
View more
ADVANTEST CORPORATION
DIGITIMES Marketing Services
DIGITIMES Translation Services
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.