Taipei, Tuesday, January 24, 2017 05:29 (GMT+8)
scattered showers
Taipei
18°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

Realtime news
  • NOR flash prices rise, says report

    Bits + chips - Newswatch | 7h 11min ago

  • Taiwan December manufacturing production index up on month, year, says MOEA

    Bits + chips | 7h 19min ago

  • Chilisin, Ralec to merge

    Bits + chips - Stockwatch | 7h 35min ago

  • Taiwan December unemployment rate down on month, year, says DGBAS

    Bits + chips | 7h 37min ago

  • Chilisin to acquire ferrite cores maker Ferroxcube

    Bits + chips - Stockwatch | 7h 40min ago

  • PTI 1Q17 sales to beat seasonal patterns, says president

    Bits + chips | 7h 42min ago

  • UMC expects wafer shipments to drop 1% in 1Q17

    Bits + chips | 7h 58min ago

  • Apple expected to adopt 2.5D glass instead of 3D glass for chassis of new iPhone, say Taiwan makers

    Before Going to Press | 7h 56min ago

  • Motech Industries to issue 50 million new shares

    Before Going to Press | 7h 57min ago

  • Taiwan December unemployment rate down on month, year, says DGBAS

    Before Going to Press | 7h 57min ago

  • China 2016 economic growth hits 25-year low

    Before Going to Press | 7h 58min ago

  • Foxconn Electronics chairman clarifies reported Sharp's ending supply of TV panels for Samsung Electronics

    Before Going to Press | 7h 59min ago

  • Sharp president reveals focus for fiscal year 2017 operation, says Nikkei

    Before Going to Press | 8h ago

  • Digitimes Research: China AMOLED panel makers technologically inferior to Samsung Display, but may win adoption from China smartphone vendors

    Before Going to Press | 8h 4min ago

  • Casetek obtains chassis orders from top-5 China smartphone vendors

    Before Going to Press | 8h 5min ago

  • Taiwan December manufacturing production index up on month, year, says MOEA

    Before Going to Press | 8h 6min ago

  • UMC to start shipping 14nm chips in 1Q17

    Before Going to Press | 8h 7min ago

Pause
 | 
View more

Global AP demand forecast, 2017-2020

RESEARCH EXTRAS | Jan 16, 12:01

Digitimes Research expects global application processor (AP) shipments to increase more than 8% in 2017 and surpass the 1.9 billion mark, with smartphones remaining the main application. After slumping in 2015, Qualcomm returned to form in 2016 and will continue...

Taiwan server shipment forecast and industry analysis, 2017

TAIWAN MOBILE DEVICE | Nov 28, 10:20

According to surveys and analyses conducted by Digitimes Research, revenues generated from sales of server motherboards, servers, storage systems and related network system equipment by Taiwan-based vendors will continue on an upward trend to reach NT$558.5 billion...

China smartphone market and industry – 3Q 2016

CHINA SMARTPHONE | Dec 13, 18:51

Smartphone shipments in the China market reached 112.3 million units in the third quarter, up 5.8% on year and 5.2% on quarter. China-based telecom carriers continued to offer subsidies to encourage existing 2G or 3G service users to switch to a 4G service and...

Global tablet market - 3Q 2016

GLOBAL TABLET | Dec 7, 11:20

Global tablet shipments in fourth-quarter 2016 are expected to see an annual decrease of 20%.

China smartphone AP shipment 4Q forecast

CHINA SMARTPHONE AP | Dec 2, 14:32

Digitimes Research estimates shipments of AP for smartphones and tablet PC in China in the fourth quarter of 2016 will show a growth of 11.6% on quarter.

Advantest
Display panels for wearable devices
The transition to 4k TV - UHD TV market forecast, 2014-2017
  • 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.