Electronics Supply Chain to Fully Recover from Japan Disaster in
Q3
El Segundo, Calif., June 29, 2011-With some companies having
already recovered from the Japanese earthquake, the entire
electronics industry is expected to complete its rebound from the
disaster by the end of the third quarter, according to new IHS
iSuppli (NYSE: IHS) research.
Electronics companies with operations near the epicenter of the
quake that had suffered building and equipment damage are expected
to restore full shipments by early September, six months after the
quake, which occurred on March 11, 2011. The restoration will
coincide with the peak season for electronics and semiconductor
sales in the third quarter.
"In the history of the electronics supply chain, nothing has had
such a broad impact as the Japan earthquake, tsunami and nuclear
disaster," said Dale Ford, senior vice president for semiconductor
market intelligence at IHS, speaking at the IHS Design & Supply
Chain Global Summit last week in San Jose, Calif. "The worldwide
repercussions of the catastrophe illustrated the global and
interconnected nature of the electronics industry, with the impact
of the disaster reverberating through the materials, components and
equipment segments of the supply chain. However, even the
semiconductor companies suffering the most direct damage from the
quake, full production will resume near the end of the third
quarter."
The duration of production disruptions varied depending on
distance from the earthquake epicenter, as presented in Figure 1
below. Affected companies that were farthest from the epicenter
took only one to two weeks to restore production, while companies
closest to the disaster could take as long as four to six months to
return to normal-depending on their response to the disaster.
El Segundo, Calif., June 29, 2011-With some companies having
already recovered from the Japanese earthquake, the entire
electronics industry is expected to complete its rebound from the
disaster by the end of the third quarter, according to new IHS
iSuppli (NYSE: IHS) research.
Electronics companies with operations near the epicenter of the
quake that had suffered building and equipment damage are expected
to restore full shipments by early September, six months after the
quake, which occurred on March 11, 2011. The restoration will
coincide with the peak season for electronics and semiconductor
sales in the third quarter.
"In the history of the electronics supply chain, nothing has had
such a broad impact as the Japan earthquake, tsunami and nuclear
disaster," said Dale Ford, senior vice president for semiconductor
market intelligence at IHS, speaking at the IHS Design & Supply
Chain Global Summit last week in San Jose, Calif. "The worldwide
repercussions of the catastrophe illustrated the global and
interconnected nature of the electronics industry, with the impact
of the disaster reverberating through the materials, components and
equipment segments of the supply chain. However, even the
semiconductor companies suffering the most direct damage from the
quake, full production will resume near the end of the third
quarter."
The duration of production disruptions varied depending on
distance from the earthquake epicenter, as presented in Figure 1
below. Affected companies that were farthest from the epicenter
took only one to two weeks to restore production, while companies
closest to the disaster could take as long as four to six months to
return to normal-depending on their response to the disaster.