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Japanese Disaster and the effect on Components Supply and TFT LCD deliveries

Due to the Japanese earthquake and tsunami, there is a risk of shortage of certain electronic components. Crystal Displays are in constant contact with all our Suppliers to gain updated visibility of products that are using components or raw materials manufactured in Japan. Understanding the impact on deliveries is on-going and we will update regularly as we verify direct and supporting supply chain processes.

While there are few reports of actual damage at electronic production facilities, impacts on the transportation and power infrastructure will result in disruptions of supply, resulting in the short supply and rising pricing in NAND flash memory, dynamic random access memory (DRAM), microcontrollers

Japanese companies are facing problems shipping components, receiving raw materials and getting workers to their facilities. Power interruptions also are slowing production—and can be a major impact on the operations of manufacturing facilities.
Pricing for higher-density NAND flash already has climbed by as much as 10% on the spot market and spot-market DRAM pricing also is surging, rising by as much as 7% since last month.

Key points

  • Pricing for higher-density NAND flash has already climbed by as much as 10% on the spot-market.
  • Spot market DRAM pricing is also surging, rising by as much as 7% since Friday
  • Toshiba Corp., the world’s second-largest producer of NAND flash, said shipments of NAND from its central Japan plant could drop by up to 20 percent in January and February.
  • Wafers supply: Shin-Etsu and Sumco owns 60% of the wafer market: Currently, Shirakawa FAb of Shin-Etsu is shut down.
  • BT (Bismaleimide Triazine) supply: This is the epoxy resin used to produce PCB. Mistubishi Chemicals is supposed to own 70% of the market.

CDS recommends customers look at their current demand and outstanding order book and anticipate longer manufacturing cycles, hence demand for Q3 and Q4 should be secured now….. CDS will offer flexible scheduling terms and will keep you updated via email alerts and your respective Account Manager will be available to discuss terms and conditions.

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