Electronics supply chains have been severely affected by the earthquake in Japan. For instance, Texas Instruments Inc., a semiconductor maker based in Texas, says that its factory in Miho received substantial damage. Its Miho factory accounted for 10% of its revenue in 2010.
Other industries have been affected by the earthquake because of the damage to their factories. Consumer electronics, steelmakers, and automobile makers are only a few among many. Most companies, however, have disclosed very little about the extent of the damage.
Toyota Motor Corp. has suspended production at all domestic plants. The result is that 40,000 vehicles will not be produced. According to a report by HIS Automotive, 45% of Toyota’s global production has now been affected by the earthquake and the tsunami. This has raised concerns from dealers in the U.S., who are worried that supplies of the Prius will not meet the high demand for the hybrid car. As of the end of February, Toyota had enough in dealer inventories in the U.S. to last about a month.
Analysts also predict higher component costs and possible product shortage for companies like Toshiba Corp., Sony Corp. and Renesas Electronics Corp. Industrial suppliers like Hitachi Ltd. have also been hit. Operations for Hitachi have stopped at six manufacturing facilities. Heavy machinery maker IHI Corp. has also been affected. The company provides engine parts for aircraft, and may also affect aircraft production for Boeing Co.
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