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Updated: 6:19 a.m. Monday, March 21, 2011 | Posted: 10:12 p.m. Sunday, March 20, 2011

Consumer electronics could be impacted by disaster in Japan

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Consumer electronics could be impacted by disaster in Japan photo
A man walks past a stock price board in a street Monday, March 14, 2011 in Tokyo, Japan. Japan's central bank injected a record 7 trillion yen ($85.5 billion) into money markets and the Tokyo stock market nosedived Monday on the first business day since an earthquake and tsunami devastated the country's northeast and raised dire worries about the economy. The benchmark Nikkei 225 stock average fell 487 points, or 4.8 percent, to 9,767.18.

By Thomas Gnau

Staff Writer

The first concern in Japan these days is a humanitarian one.

But those who do business with Japan recognize there’s another concern. Those who buy or distribute electronic products made in Japan are trying to determine how their businesses may be affected by the March 11 earthquake and tsunami.

“Japan is a huge player in the consumer electronics sector,” said Mike Shane, chairman of Moraine’s Lastar Inc., a manufacturer of low-voltage cabling and connectivity products.

Fifteen percent of the world’s electronic products are made in Japan, as are 20 percent of all semiconductors, said Jason Oxman, spokesman for the Washington, D.C.-based Consumer Electronics Association, a trade group.

Jordan Selburn, principal analyst for consumer electronics at iSuppli, a market intelligence firm based in El Segundo, Calif., expects some raw materials to be more difficult to obtain, which could create problems across the supply chain.

For example, the sources for raw silica wafers, fundamental to so many semiconductors, are in areas affected by the disaster, he said.

“I think you’re going to see prices go up,” Selburn said. “You’re going to see companies double and triple order in order to ensure supply.”

Standard logic chips found in laptop and desktop computers had production lead times of six months before the quake and tsunami, he said. “This is going to potentially push that lead time out even further.”

Selburn, however, said there appears to be no immediate inventory shortage.

Even in areas not directly affected by the quake and tsunami, companies like Sony and Sharp have voluntarily cut power at plants to help conserve power nationwide, Oxman said. That move has idled some plants, he said.

Selburn compared cutting power at electronics manufacturing sites to trying to bake a pie that requires an hour of baking with 30 minutes of baking today and another 30 minutes tomorrow. These plants need continuous, uninterrupted power, he said.

Contact this reporter at (937) 225-2390 or tgnau@DaytonDailyNews.com.

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