Japanese Earthquake To Cause Electronic Component Price Hike

The devastating earthquake and tsunami that have struck Japan will drastically affect the supply and hike the prices of key technology components, analysts have claimed.

Japan, being a hub for technology component manufacturers, has suffered from large scale of destruction of human life and property after being rocked by a 9.0 earthquake which was followed by 30-foot tsunami wave.

According to Reuters, a large number of factories belonging to component, electronics and automobile manufacturers have been shut down following the natural disaster while damage done to key infrastructure like power, roads and transport will take weeks before it is fixed.

Research firm iSuppli warns that shortage of key electronic components will lead to a considerable hike in prices of electronic products in the weeks to come.

“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 prices,” iSuppli said.

“Components impacted will include NAND flash memory, dynamic random access memory (DRAM), microcontrollers, standard logic, liquid-crystal display (LCD) panels, and LCD parts and materials,” it added.

Leading components manufacturers like Toshiba, Texas Instruments, Canon and many others have had their factories damaged and are yet to discern the amount of damage caused by Japan's worst earthquake in a 100 years.