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Japan disaster puts historic hurt on chip industry

It seems that the horrible disaster in Japan has hurt the worldwide computer chip industry, according to analysts. Companies are having trouble attaining necessary items to make and shipping products.

As Computerworld reports, the earthquake and tsunami in Japan, as well as the ongoing nuclear power plant crisis, has damaged semiconductor manufacturing facilities and affected electrical supply and transportation infrastructures.

Dale Ford, a senior vice president with IHS iSuppli, claims that it could take up to six months before semiconductor productions fully resumes in Japan. Since Japan plays a major role in the global semiconductor manufacturing process, there already is a major worldwide supply issue. “This is the biggest impact on the electronics supply chain in the history of the semiconductor industry,” said Ford. “We’ve had other disasters but this is the most significant supply chain impact that the industry has ever experienced.”

“In the production of equipment, you can’t have 94% of the parts.. you need 100% of the parts to build any device.”

From what iSuppli reported last month, the disaster in Japan has placed a 25% impact on the worlwidde production of silicon wafers used to create computer chips.

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