Japanese electronics industry taking a hit as disaster recovery begins

As Japan attempts to recover and rebuild after the devastating natural disasters of the past week, the effects of nature’s wrath on the tech industry is slowly becoming clear. According to Engadget, tech giants Sony, Canon and Panasonic have all donated millions of yen in disaster recovery aid, as well tens of thousands of basic electronic survival equipment like radios and batteries. This is all while delays and setbacks in production have only just begun to plague the Japanese consumer electronics industry.

32GB NAND pricing is up 18% after Toshiba suspended operations in their plant in the Iwate Prefecture. Toshiba, one of the biggest producers of flash memory, and manufacturer of the same NAND chip employed in the iPad 2, has not decided when it will resume operations in the plant due to continued aftershocks and general instability.

Electricity is becoming a scarce resource, as Tokyo Electric lost 27% of its electricity generation capacity. This is necessitating electricity rationing across the industry’s manufacturing plants, decreasing throughput and supply. Many companies have agreed to comply with government ordered rolling outages, and have shut off non-essential electronic equipment as Japanese infrastructure begins its healing process.

Many electronic components have sources or suppliers in Japan, and every manufacturer in the country is still reeling from the shocking devastation that is expected to exceed 10,000 as of this morning, according to the Guardian. While the focus right now is deservedly on the human consequences and fallout of the disaster, the overall economic effects that this will have across the globe and the industry will likely not be marginal.  

Report a problem with article
Previous Story

Microsoft shows off "Year of Internet Explorer 9" video

Next Story

Transformers MMO on the way from Jagex

22 Comments

Commenting is disabled on this article.

I'm in shock a country as well developed as Japan could be affected this badly.
I'm not trying to be racist when before this, I thought it only seemed to be the poorer countries that got hit hard by disasters.

My Customized Sony Vaio laptop got shipped out of Japan the day before the tragedy too =O

In one sense, I am thankful that of all places, the earthquake hit one of the most prepared areas, rather than an unprepared country. If it's this bad in Japan, then anywhere else, it would be tonnes worse.

Any case, good luck to all Japanese!

(and on a side note, this actually helps the economy in the long-run, cause now there's a lot of reconstruction -> stimulating the economy)

Nagamasa said,

(and on a side note, this actually helps the economy in the long-run, cause now there's a lot of reconstruction -> stimulating the economy)

Even if this is perhaps the worse possible way of doing so.

Nagamasa said,

(and on a side note, this actually helps the economy in the long-run, cause now there's a lot of reconstruction -> stimulating the economy)

With 25% of their capacity to produce electricity shut down forcing industry to either shut down or drastically reduce production, this could lead to a snow ball effect in all the bad ways and could lead to economic disaster we have not seen yet in this recession. The rebuilding efforts may be hampered if industry can not quickly get back the ability to produce.

SharpGreen said,

Even if this is perhaps the worse possible way of doing so.

Well as harsh as it sounds it is actually very true.

It's like when you set sections of land on fire in Africa, your doing it to stimulate the soil etc.

Now appreciate totally this involves human life and its a terrible situation that I hope more and more are pulled out alive, however it will actually be beneficial in the long run.

One of the main reasons they were affected so bad was the wooden housing, built because it was a cheap simple way to prevent disaster from earthquakes crippling the buildings (the wood is flexible, concrete is not) but they hadn't prepared for a Tsunami of this size.

Its a real shame that there wasn't more data highlighting this as a potential disaster as I am sure Japan would have been ahead of the game had it been made aware.

Such a shame,

This just sucks on so many levels. It's not like Japan was some economic powerhouse (still) prior to the quake/tsunami and this double whammy is probably going to be felt for quite some time. The other thing that sucks is that the Japanese people are really cool people and so just why? ya know?

Soulsiphon said,
This just sucks on so many levels. It's not like Japan was some economic powerhouse (still) prior to the quake/tsunami and this double whammy is probably going to be felt for quite some time. The other thing that sucks is that the Japanese people are really cool people and so just why? ya know?

Umm they are the third largest economy behind the US and China.

Lexcyn said,

Umm they are the third largest economy behind the US and China.

They overtook China. They're the second... or were before this disaster

Tjcrazy said,

They overtook China. They're the second... or were before this disaster

China just recently overtook them for second.

s3n4te said,
Does this mean Zelda Skyword Sword will be delayed?

Who cares about that. Somehow I think they could care less about that right now. Show some compassion for goodness sake.

StevenNT said,

Who cares about that. Somehow I think they could care less about that right now. Show some compassion for goodness sake.

For some, it's too late.

Oh please, don't kid yourselves. Not like you guys haven't been asses before. And also, if we make fun of something it doesn't mean we don't feel for unfortunate events. Take it with a grain of salt imho.

s3n4te said,
Does this mean Zelda Skyword Sword will be delayed?
Yea probably, whats another delay for that game

Very interesting information. Sometimes I feel too safe in the US and think these things don't effect us. Right now my gas is higher because of the turmoil in the middle east, and my hardware will be if i choose to purchase because of mother nature.