Economic consequences catastrophe Japan make themselves felt

29 March 2011

As if the enormity of the humanitarian crisis following the earthquake and tsunami in Japan were not enough, economic effects are now also starting to emerge.The technology sector and the automotive industry appear to be particularly hard-hit.

Technological companies in e.g. Taiwan and Korea that depend on difficult-to-replace Japanese products are already experiencing production difficulties. Yet shortages at companies in Europe, including the Netherlands, are also looming. A few of the pigments used by AkzoNobel come from the area hit by the disaster, necessitating the use of substitute products. And due to a lack of Japanese parts, OEMs in the automotive industry are finding it increasingly difficult to keep production lines open. Another company running up against problems is Apple: according to market research from IHS iSuppl,i, the aftermath of the Japanese earthquake may cause logistical disruptions and supply shortages in Apple’s newly launched iPad 2, as at least five parts are sourced from Japanese suppliers- NAND flash from Toshiba Corp., dynamic random access memory (DRAM) made by Elpida Memory Inc., an electronic compass from AKM Semiconductor, the touch screen overlay glass likely from Asahi Glass Co. and the system battery from Apple Japan Inc. 

 

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