Date: 30/06/2011

Positive impact from the Japanese semiconductor industry's recovery from disaster in 3Q 2011

IHS iSuppli has reported the entire electronics industry is expected to complete its rebound from the disaster by the end of the third quarter, according to new IHS iSuppli research.

According to IHS iSuppli the timing of the recovery will be fortuitous. Following normal seasonal patterns, global semiconductor revenue growth will hit an annual crescendo in the third quarter, with a sequential rise of 7.4 percent. This compares to a 1.4 percent decline in the first quarter, a 2.9 percent increase in the second quarter and a 3.1 percent rise in the fourth quarter. The restoration to coincide with the peak season for electronics and semiconductor sales in the third quarter.

"In the history of the electronics supply chain, nothing has had such a broad impact as the Japan earthquake, tsunami and nuclear disaster," said Dale Ford, senior vice president for semiconductor market intelligence at IHS, speaking at the IHS Design & Supply Chain Global Summit last week in San Jose, Calif. "The worldwide repercussions of the catastrophe illustrated the global and interconnected nature of the electronics industry, with the impact of the disaster reverberating through the materials, components and equipment segments of the supply chain. However, even the semiconductor companies suffering the most direct damage from the quake, full production will resume near the end of the third quarter."

The disaster also had varying impacts on assorted segments of the semiconductor market. The impact was most severe on automotive equipment, given that Japan accounts for 31.5 percent of global semiconductor production for automotive electronics, as per IHS iSuppli. Consumer electronics is the 2nd hard hitter. Here, Japan is responsible for 45.1 percent of global consumer electronics semiconductor production, finds IHS iSuppli.

In comparison, the impact on the wireless and data processing semiconductor markets was mild, while the wired communications segment wasn't affected at all, adds IHS iSuppli.

IHS iSuppli rates Fujitsu as most rapid and efficient recovered semiconductor company. Despite facilities close to the epicenter of the earthquake, Fujitsu had attained full recovery to pre-disaster production levels at five chip plants on June 9.