Japan earthquake's impact on semiconductor community

March 11, 2011 -- An earthquake of magnitude 8.9 struck today, Friday March 11, at 2:45 PM off the coast of Japan's main island, Honshu. Jim Handy, a director of Objective Analysis semiconductor market research, shares his insights into Japan's semiconductor fabs and the quake's impact range.

Objective Analysis' map, created in 2007, shows most of Japan's semiconductor fabs, with today's earthquake epicenter in northern Japan highlighted. The map will be updated soon with newer fab information.

The Japan earthquake was preceded by a 7.3 temblor on Wednesday near the same area, about 70km off the coast near the city of Sendai. A 6.6 magnitude aftershock also occured today. (Visit Google's Japan earthquake crisis resource page here).

Objective Analysis' map, created in 2007, shows most of Japan's semiconductor fabs, with today's earthquake epicenter in northern Japan highlighted. The map will be updated soon with newer fab information.

While detailed damage assessment is still in early stages, Jim Handy, speaking with senior technical editor Debra Vogler, says that significant structural damage has occured as far south as Tokyo, Japan. There are a number of fabs in northern Honshu that could be severly impacted. Freescale Semiconductor has told Solid State Technology that they evacuated the Senia 6" wafer fab, seen on the map closest to the epicenter of Japan's quake, and do not yet have building damage reports. "We have assembled our emergency task force and are in the process of monitoring and assessing the situation. Our first concern is with all the members of our Freescale family and to ensure the safety of our staff in all our facilities," reported Freescale Semiconductor's representative.

The Samsung/Toshiba fab in Yokkaichi, Japan, supplies over 40% of the world's NAND flash and DRAM chips. While it was stopped during the earthquake, the fab is back up and running. This could affect production and semiconductor supply for up to a couple months. iSuppli reports that the two major DRAM fabs in Japan, operated by U.S.-based Micron and Japan’s Elpida, have not been directly affected, according to preliminary indications from IHS iSuppli contacts. Read IHS iSuppli's preliminary assessment of the Japanese earthquake's impact here.

Objective Analysis anticipates phenomenal price swings and large near-term shortages as a result of this earthquake.

Handy predicts that Renesas fabs could be the most set back by the Japan earthquake, with several in the dangerous area near the epicenter.

Smaller earthquakes in 2008 and 2007 have caused concern for Japan's semiconductor industry. In 1999, a major earthquake in Taiwan (7.6 magnitude) stopped fab operation. In 1989, the

Loma Prieta earthquake (6.9 ) interupted semiconductor production in Silicon Valley.

Demand will be impacted as well since many electronics manufacturers are in Japan, and their consumption of semiconductors will be halted until earthquake damage is repaired.

Objective Analysis is contacting semiconductor companies in Japan and updating its findings after this major natural disaster.

Learn more at www.Objective-Analysis.com