Silicon wafers used to manufacture semiconductor chips (wafers) may not meet demand since May, as the strong earthquake in Japan on March 11 resulted in the suspension of production at the two major plants.
However, several analysts pointed out that the market tightness may be only a short-lived phenomenon, due to excess capacity in the industry and inventories before the earthquake.
South Korea's LG Silitron may seize this opportunity to further tap into this industry dominated by Japan. The total wafer market in 2009 exceeded US$7 billion.
Japan's Shin-Etsu Chemical Industry, the world's largest silicon wafer maker, was forced to suspend production at its largest fab. There was no timetable for resumption of production.
Analysts believe that although large customers such as TSMC have bargaining power to obtain wafer supply, smaller companies may find it difficult. This situation may also spread to the production of electronic products.
“Most customers’ inventory is sufficient for April, so the problem will start to emerge in May,†said Akira Minamikawa, Vice President of IHS iSuppli, and stated that the price may increase by up to 20-30% and the earthquake may be up to six months. During the time, it was a drag on the production of the Shin-Etsu chemical industry.
He added that so many Japanese factories were damaged in the earthquake and it took some time to obtain the necessary parts, which delayed the time for the Shin-Etsu chemical industry to resume full production.
However, several analysts pointed out that the market tightness may be only a short-lived phenomenon, due to excess capacity in the industry and inventories before the earthquake.
South Korea's LG Silitron may seize this opportunity to further tap into this industry dominated by Japan. The total wafer market in 2009 exceeded US$7 billion.
Japan's Shin-Etsu Chemical Industry, the world's largest silicon wafer maker, was forced to suspend production at its largest fab. There was no timetable for resumption of production.
Analysts believe that although large customers such as TSMC have bargaining power to obtain wafer supply, smaller companies may find it difficult. This situation may also spread to the production of electronic products.
“Most customers’ inventory is sufficient for April, so the problem will start to emerge in May,†said Akira Minamikawa, Vice President of IHS iSuppli, and stated that the price may increase by up to 20-30% and the earthquake may be up to six months. During the time, it was a drag on the production of the Shin-Etsu chemical industry.
He added that so many Japanese factories were damaged in the earthquake and it took some time to obtain the necessary parts, which delayed the time for the Shin-Etsu chemical industry to resume full production.