Taipei, Wednesday, February 10, 2016 20:01 (GMT+8)
mostly cloudy
Taipei
20°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

Topics: Page 2

China smartphone touch-panel industry 2016 forecast

CHINA SMARTPHONE | Feb 6, 17:23

In 2016, China's smartphone panel capacity is expected to increase steadily, with BOE and Tianma expanding 6G capacity and GVO and Truly Optoelectronics increasing their share of handset panel production. This Digitimes Research Special Report analyzes the key...

2016 global AP demand forecast

RESEARCH EXTRAS | Jan 27, 18:12

This Digitimes Research Special Report explains the dynamics of the global AP market by analyzing key trends in the market including the shift to 4G, the market strategy of the key AP vendors and GPU providers and the role various applications have in influencing...

China smartphone market and industry - 4Q 2015

CHINA SMARTPHONE | Feb 5, 15:06

Looking forward to the first quarter of 2016, with both China-based makers and international brands aggressively spreading out their new products including all low, mid, and high cost models on the market in the fourth quarter of 2015, the market will have to...

China smartphone AP shipments - 4Q 2015

CHINA SMARTPHONE AP | Feb 5, 14:41

China's smartphone AP shipments grew 16.1% sequentially in the fourth quarter of 2015 mainly thanks to demand for inventory preparation from some vendors and year-end holidays.

Taiwan LCD TVs – 4Q 2015

TAIWAN DISPLAY SYSTEM | Feb 4, 14:40

Taiwan's LCD TV shipments reached 10.24 million units in the fourth quarter of 2015, increasing 12.0% on quarter but decreasing 5.8% on year.

The Big Fund
2015 China smartphone panel trend forecast
Analysis of China revised domestic semiconductor industry goals
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.