The disruption to Japanese industrial production due to the recent natural disaster is expected to disturb supply for products such as connectors in industries such as telecommunications.
The economists from IHS (NYSE:IHS), a leading global source of information and analysis, warned the triple disaster in Japan will affect every stage of the electronics supply chain.
Japan is the second largest global supplier of semi-conductors and is said to own 22 percent of the silicon wafers market, providing 60 percent of the worldwide supply.
It is predicted that it could take up to six months for manufacturers to get back to producing their previous capacity, the electronics and automotive industries feeling the effects the worst.
Jone-Lin Wang, IHS CERA managing director, noted that 10 percent of the electrical power generation in Japan could be off line for the next couple of months, possibly causing a summer of rationed supplies.
The first and second quarters of Japan’s economic growth are expected to experience a fall of 1.8 percent and 6.5 percent respectively.
While some IHS experts say the impact of the disaster on the automotive, electronics and chemicals industries ‘could be quite painful’; others think the shock will be short lived.
“The bottom line is that in the most likely scenario – other than Japan and North Africa – growth in much of world economy will not be derailed,” noted Nariman Behravesh, HS chief economist.
Connector Suppliers UK
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