iSuppli report on IT manufacturing impact

LCD production most at risk from Japan quake

Supply chain analysts IHS iSuppli issued a preliminary estimate of the impact of the Japanese earthquake on the manufacturing industry.

iSuppli said that Japan accounted for 13.9 per cent of all global electronic equipment factory revenue, including computers, consumer electronics and communications devices. 

However Japanese suppliers accounted for more than a five of global semi conductor production last year. iSuppli did note that not all of the production by Japanese firms is located in Japan.

The report said that Japanese semi conduction production would not likely be impacted due to direct damage but rather disruption in the supply chain such as difficulties with raw materials. 

iSuppli said that a more important supply chain disruption due to the earthquake is likely to involve production of LCD panels. Japan accounts for a "very high share of components" in this product category, iSuppli said.

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