Electronics Industry Recovery After Japan Disaster Completes in Q3

One would think a disaster the magnitude of the one that hit Japan on March 11 would have more long-lasting effects on all aspects of the world economy, but it seems humankind, or in this case the electronics industry, is quick to recover.

As the world no doubt remembers, and will keep remembering, an earthquake and tsunami struck Japan on March 11, 2011.

The massive loss of life definitely was the greatest cost of it all, but there were also significant effects on the economy.

Particularly, multiple IT manufacturing facilities were affected, to differing degrees, leading to shortages and supply worries.

For those that want numbers, 14 semiconductor suppliers were impacted by the earthquake, along with four silicon wafer makers.

Fortunately, while some prices did fluctuate and though there are still certain strained elements in regards to supply, things are stabilizing.

In fact, iSuppli reports that everything should have recovered completely by the end of the third quarter.

Those closest to the epicenter will finish recovery by September, meaning that it will have taken them six months to get back on track, quite the jump from the one or two weeks needed by those farthest away from the epicenter.

“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.”