Japan Disaster Affecting Major Manufacturers

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Image source: www.japan-guide.com

After the devastating disaster in Japan, some big name manufacturers such as Lenovo, Toshiba, Texas Instruments, Elcoteq, Fujitsu, and Sony have been forced to temporarily halt some supply and assembly operations due to shortages and/or major infrastructure or supply damages.

As suppliers and manufacturers continue to assess the damages, many have said it’s hard to quantify supplies that have been damaged and the amount of financial losses they will take. Many that saw supply damages are looking to secondary back-up suppliers–but these back-ups may become overwhelmed with so many manufacturers coming to them all at once. Lenovo has stated that this will pose a threat to supply chains on a global level.

NAND flash and DRAM prices are surging following damage reports; supplies of other units such as LCDs and LEDs in particular are also being affected.

Although some doubt still remains about dull supply and financial loss, production recovery will take place for most manufacturers within the next month or so. For those who will take over a month to recover, supply, production, and plant issues will be a bigger problem.

Here is a list of some major manufacturers who have either reported being affected or unaffected by the disaster:

  • Toshiba – An LCD assembly line in Japan was affected by damages; it will be closed for about 2-3 more weeks due to equipment that had been pushed out of alignment by the earthquake.
  • HP – No HP offices in and around Tokyo saw major damage.
  • Apple – Battery and memory supplies have been slowed down.
  • Dell – There has been no immediate interference with the major Dell supply and production chains in Japan. Dell also mentioned that the fulfillment centers, technical support, and other offices were not damaged.
  • Lenovo – Statements have been made about the worry over hardware/parts damaged and the financial impact for next quarter.
  • Sony – Five to six Sony notebook battery production factories have been closed down.
  • Texas Instruments – Four to six months of its chip productions will see a disruption; partial production will begin again in mid-April while full production will not start until mid-July. The company saw infrastructure damages.
  • Hitachi – The production of Hitachi’s small LCDs will be stopped for another 2-3 weeks; there have been damages/power outages.
  • Elcoteq, Ericsson and Alcatel-Lucent – Supplies and parts have been affected; still assessing/quantifying damages. Elcoteq is also worried about its overall volume and financial status.

 

 

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