Taipei, Tuesday, November 21, 2017 07:07 (GMT+8)
cloudy
Taipei
19°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

Realtime news
  • Asustek expected to remain at top in motherboard and graphics markets in 2018

    Before Going to Press | 9h 14min ago

  • Nova to see increasing orders from memory clients

    Before Going to Press | 9h 14min ago

  • Taiwan Tohcello to establish ICROS tape factory in southern Taiwan

    Before Going to Press | 9h 14min ago

  • Qualcomm reportedly to cut cooperation with Taiwan IT players over IIoT development

    Before Going to Press | 9h 15min ago

  • Epistar chairman expects Mini LEDs to aid on empty capacity issue

    Before Going to Press | 9h 15min ago

  • China solar players considering new plants in US

    Before Going to Press | 9h 15min ago

Pause
 | 
View more

China AMOLED panel capacity expansion forecast, 2016-2020

RESEARCH EXTRAS | Jun 8, 15:37

This Digitimes Research Special Report examines the China AMOLED industry, focusing on the expansion capacity of the makers, the current implementation plans of major smartphone vendors in the market and the technological hurdles faced by China's makers.

Taiwan server shipment forecast and industry analysis, 2017

TAIWAN MOBILE DEVICE | May 31, 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 rose 4.8% on year to reach NT$555.8 billion (US$18.79...

Global tablet market – 3Q 2017

GLOBAL TABLET | Nov 16, 14:59

According to Digitimes Research statistics, third-quarter 2017 global tablet shipments totaled 42.29 million units, outperforming market expectation. Shipments of both brand and white-box tablets showed obvious on-quarter growth with the shopping season kicking...

Taiwan LCD TVs – 3Q 2017

TAIWAN DISPLAY SYSTEM | Nov 14, 14:08

Shipments to North America saw significant growth in the third quarter of 2017 because of seasonality. Year-end holiday promotions are expected to drive up Taiwan's LCD TV shipments in the fourth quarter.

Taiwan small- to mid-size LCD panels – 3Q 2017

TAIWAN LCD PANEL | Nov 13, 15:36

Taiwan panel makers saw strong orders for 18:9 all-screen smartphone applications in the third quarter, during which their 6G LTPS production capacity also increased.

Global notebook shipment forecast, 2017 and beyond
Global AP demand forecast, 2017-2020
Global notebook shipment forecast, 2017 and beyond
  • China AMOLED panel capacity expansion forecast, 2016-2020

    This Digitimes Research Special Report examines the China AMOLED industry, focusing on the expansion capacity of the makers, the current implementation plans of major smartphone vendors in the market and the technological hurdles faced by the China makers.

  • Global AP demand forecast, 2017-2020

    Digitimes Research expects global AP shipments to surpass the 1.9 billion mark in 2017, with smartphones remaining the main application. Qualcomm will be leading the market in 2017, as other players continue playing catch up and scramble for funds to invest in more diverse applications.

  • Global notebook shipment forecast, 2017 and beyond

    This Digitimes Special Report examines key factors in the notebook industry, including products, vendors and ODMs, that will affect total shipments in 2017 and through 2021.