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The influence of the earthquake of Japan is 500 billion dollars

Hiroshi Komoda

New member
The Japanese Government calculated the influence that stagnation of the semiconductor industry caused by the earthquake disaster of Japan gave to the world.

The investigation was carried out mainly on the hearing to the company by Ministry of Economy, Trade and Industry.

When semiconductor-related part production stopped from the middle of March to the end of April, the Japanese Government announced that influence went for production and service of a total of approximately 500 billion US dollars in the world.

Example:
When the shutdown of the factory of Renesas Electronics lasts one and a half months, an approximately 81.2 billion dollars share of the world car production may be lost
The production of liquid crystal televisions may stop on a 5 billion dollars scale, too.

When a factory of world's largest Shin-Etsu Chemical of the silicon wafer stops for one and a half months, world semiconductor production decreases by approximately 18.75 billion dollears. As a result, other than electric equipment industry, communication, the Internet, the sales of the service industry including the broadcast decrease and may be connected for the decrease in production, service of approximately 400 billion dollears.


The Japanese Government predict that may not produce liquid crystal panel for smartphones with electricity shortage enough. It may be substituted by the then overseas product.
Japan holds approximately 70% of the world share.
 
Hello Hiroshi,

Thank you very much for the update.

The most recent financial news from Japan is very concerning. How long do you think the power outages will continue? I'm wondering if the Japan economy will be even more services orientated after the recovery and less manufacturing? I certainly hope not.

I would like to see the United States focus more on manufacturing in the future as well.

Best of luck to you,

D.A.N.
 
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Komoda san,

The financial and human damage caused by the earthquake, tsunami and power outages is simply staggering to the Japanese and world economy. I wish that there was an easy solution to make the recovery happen more swiftly.

I've even read that the Japanese auto makers are having slow-downs in the United States because of critical part shortages from Japan.

Hopefully the support from American troops, donations and our prayers will combine to help provide some comfort.

shikata ga nai
 
This "shock" has already forced some major changes into manufacturing/component sourcing mentality. When I spoke to some foundries recently, it is becoming apparent that chip vendors are now very keen on spreading the manufacturing of ICs across several foundries to distribute the risks. This is being as important as pricing. As a result, it may line up very well with the Common Platform initiative by IBM/GF/Samsung.
 
It is predicted that the power outages is prolonged in Japan.
The factory is forced to economy in power consumption, and the production efficiency will fall down at least because electric demand rises in the summer.
The problem of the nuclear power plant will be prolonged, too.
You might know, by a local election held in such situation, the Democratic Party of the government ruling party largely lost a seat.
The earthquake brought us misfortune, but the government brings further misfortune to us.
 
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