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Japanese earthquake impacts electronics production; LCD components threatened

While authorities are continuing to grapple with the devastation of the 9.0 magnitude earthquake in Japan, a new summary from IHS iSuppli identifies the impact of the temblor on Japan’s global electronics production.

According to IHS iSuppli, last year Japan was responsible for 13.9 percent of all global electronic equipment factory revenue, including manufacturing computers, consumer electronics and communications gear. Compared to the $1.6 trillion total worldwide, Japan produced $216.6 billion.

Other key data points include

  • Japan accounted for 16.5 percent of global consumer electronics equipment factory revenue in 2010.
  • Japanese suppliers last year were responsible for more than 20 percent of global semiconductor production; although, some of this production was done by companies with Japanese headquarters and production plants elsewhere.
  • It appears the greatest impact of the quake will be on the supply chain for materials needed now from direct damage to semiconductor production facilities.
  • DRAM manufacturing in Japan, which accounts for 10 percent of the worldwide total, appears to be unaffected by the earthquake.
  • Last year, Japan was responsible for 6.2 percent of the $86.3 billion worldwide production of large LCD panels. According to IHS iSuppli, it appears that only a single LCD fabricator may be in an area impacted peripherally by the quake.
  • The larger impact on LCD panel production may be on production of the other components used to build LCD displays.