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Supply Chain Disruptions Hit Japanese Electronics Cos.

In the wake of Japan's mounting crisis, a number of Japanese companies have reported disruptions to their supply chains.

Japanese Mobile phone company Sony Ericsson said earlier today that the damage from the earthquake would soon present problems for the company's manufacturing operations.

"Although the full impact of the current situation on our business will take additional time to assess, Sony Ericsson anticipates disruption to its supply chain operations," Sony Ericsson said in a statement.

The company said that it is in the process of figuring out alternative supply sources and determining new locations for certain manufacturing operations.

Other companies have also reported manufacturing issues. Toshiba today said that it will close a LCD assembly line outside Tokyo for a month. Like many companies, Toshiba has felt the effect of power outages and structural damage that have hit Japan in recent days.

The plant, which manufactures small liquid crystal displays for use in car navigation systems and mobile phones, would be closed so as to give Toshiba time to repair equipment damaged in the earthquake.

Hitachi Ltd. made announced it was closing its factory near Tokyo until next month. Sony, too, recently says it will close at least five factories in Japan.

While the companies do not see the factory closings affecting their first quarter earnings, it is likely the effects of the disruptions will appear in subsequent quarters.

Japan is a significant manufacturer of many electronics components, including semiconductors and NAND RAM.



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Publication:International Business Times - US ed.
Geographic Code:9JAPA
Date:Mar 17, 2011
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