Japan's Troubles Hit Home in IT Planning

16.03.2011
Even as my thoughts are with the people of Japan as they continue to battle repercussions from the earthquake, tsunami, aftershocks and nuclear reactor problems, it's hard not to be struck by the disruptive implications all around the globe. And more certainly lie ahead.

In manufacturing, supply chain and distribution, delayed product deployments and increased costs for businesses in every geographic region are already being felt. And the most immediate hit is in tech.

Consider this: In 2010, Japan represented 10.2 % of worldwide data processing revenue and 16.5% of global consumer electronics equipment factory revenue, according to the IHS iSuppli market research firm.

Even if company factories were spared earthquake and tsunami damage, the country's rolling blackouts are sure to wreak havoc with production floors and cause problems throughout the supply chain.

"Suppliers are likely to encounter difficulties in getting raw materials supplied and distributed and shipping products out. This is likely to cause some disruption in the semiconductor supplies from Japan during the next two weeks," IHS iSuppli predicts.

Some of the components and electronics manufactured in Japan: LCD panels and their parts, semiconductors, NAND flash and DRAM. In fact, companies headquartered in Japan ranked No. 3 in semiconductor production among the world's major chip manufacturing regions, according to IHS iSuppli.