Taipei, Saturday, December 20, 2014 02:21 (GMT+8)
light rain
Taipei
16°C
Digitimes Insight: Japan earthquake impact on semiconductor industry
Nobunaga Chai, DIGITIMES Research, Taipei [Tuesday 15 March 2011]

Areas affected by Japan's March 11 earthquake, aftershocks and the quake-triggered tsunamis include the prefectures of Fukushima, Miyagi, Aomori, Yamagata, Iwate and Akita.

Not to mention its focus on the development of agriculture and tourism, northeast Japan is also considered one of the nation's major manufacturing locations. Several of Japan's major semiconductor companies locate their manufacturing spots in the northeast prefectures, for example, Toshiba's 8-inch wafer fab in Iwate, Renesas Electronics' factories in Aomori, Hokkaido and Yamagata, Elpida Memory's backend manufacturing facility in Akita and Fujitsu's plants in Fukushima.

Disruptions in transportation and power infrastructure will inevitably have a certain degree of impact on chip companies. Moreover, there is also concern about supply constraints for upstream materials.

With its major production hub in Nishigo Village of Fukushima, a prefecture close to the epicenter of the earthquake, Shin-Etsu Handotai (SEH) is expected to suffer significantly from the impact. SEH is still unable to disclose when normal operations at the facilities can be resumed.

SEH's Shirakawa plant, Fukushima Prefecture, produced about 22% of total silicon wafer demand in the world in 2010. Monthly capacity at the plant reaches as high as 800,000 12-inch wafers, accounting for more than 60% of SEH's overall production capacity of 1.2 million units.

Many chipmakers have claimed that they are capable of activating alternatives if necessary. In addition, wafer inventory among companies remains at a sufficient level of two to three months. However, if SEH's supplies cannot return to normal over a longer period of time, the semiconductor market will struggle with wafer shortage issues later in the year.

In 2010, Japan's semiconductor industry generated sales of US$44.6 billion, up 16.4% from 2009 levels. The growth also represented a recovery for the sector following two years of sales drops. Japan accounted for 15.9% of total semiconductor revenues worldwide in 2010, compared to 16.9% in 2009 and 19.5% in 2008.

Japan top-5 semiconductor companies: Revenues and worldwide ranking, 2009-2010 (US$m)

2010 Japan rank

Company

2010 revenues

2009 revenues

Y/Y

2010 WW rank

2009 WW rank

1

Toshiba

13,081

10,319

26.8%

3

3

2

Renesas

11,840

5,153

129.8%

5

9

3

Elpida

5,678

3,948

74.2%

10

15

4

Sony

5,336

4,468

19.4%

14

10

5

Panasonic

5,128

3,243

58.1%

15

18

Source: Digitimes Research, compiled by Digitimes, March 2011

Digitimes Research: Silicon wafer suppliers, market share 2010

Source: Digitimes Research, compiled by Digitimes, March 2011

Digitimes Research: Japan semiconductor industry and its share of WW market, 2005-10 (US$b)

Source: Digitimes Research, compiled by Digitimes, March 2011

Advantest
DIGITIMES Marketing Services
Greater China touch panel shipment forecast through 2015
  • 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.

  • 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.