Japan Disaster could affect IT Industry

Japan is well known for its technology industries throughout the world, and Japanese Hi-Tech products account for a large share in the world market, compared to a majority of other countries. Japan is one of the leading nations in the fields of scientific research, technology, machinery and medical research with the world's third largest budget for research and development. Japan also has large international corporate conglomerates such as Fuji (which developed the nation's first electronic computer, FUJIC, in 1956) and Sony. Sony, Panasonic, Canon, Fujitsu, Hitachi, Sharp, NEC, Epson and Toshiba are among the most well-known electronics companies in the world. 

Tsunami wave slammed Japan's eastern coast

Source: articles.nydailynews.com

The powerful tsunami that slammed into Japan's eastern coast comes just two days after warnings that the movement of the moon could trigger unpredictable events on Earth. This disaster not only affect the economic of Japan but also affect the IT industry for the whole world. This includes problem of shortages in flash memory supply could hit about the time when Apple starts making the iPad 2.This is due to the long production cycle of flash memory which it will takes two and a half months. Concern about potential NAND shortages have centered around Toshiba, the Japanese company that produces about 40% of the world's flash memory. Toshiba shut down its plants on to assess damage and the impact of the rolling blackouts that have been implemented in Japan because of the crisis of nuclear power plant on the northeast coast. Apple uses about 20 percent of the world's production in its iPhone, iPad and iPod lines. This problem may impact the next iPhone production.

Besides that, Taiwan's economic ministry expects multiple impacts from japan quake. The semiconductor and display panel industries on the island to take a hit from the earthquake in Japan last week as supplies are suspended due to factory damage or transportation snarls, translating in some cases to higher manufacturing costs. Taiwan face a fight to get raw material as 50 percent of world's silicon stock comes from two Japanese firms, and both affected by earth quake. The ministry did not give the exactly estimate figure on how much they would end up costing local tech firms in Taiwan which to builds components to make PCs for world top brands.

Recently, Japan is still assessing the scale of Friday’s devastating tsunami, but in many parts of the country production has ground to a halt, and any long-term production issues could have a ripple effect on the technology industry. The affect not only to the Japan IT industry but also to other countries that used product or components produce by Japan as well. 

Pray for Japan..^_^

Source:blog.beachoutpost.com

Source:www.nbcbayarea.com; www.computerworld.com

By:

Dolita Lolita