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Date: 24-03-11

Japan semiconductor industry status; 12 days after the Earthquake

Renesas Electronics' semiconductor and other facilities in Japan:

Renesas Electronics Corporation has announced the impact of the earthquake in northern Japan on March 11, on Renesas Electronics Group ("the Group") manufacturing sites and its response to the planned blackouts. The Group intends to add details of the impact from the earthquake to its financials when confirmed information is available.
[Status of Renesas Electronics Group's factories (as of March 24, 2011, 12:00 p.m)]

Factory City/
Prefecture
Operational Status and Status of Electric Power Supply Status of the investigation
1 Renesas Northern Japan Semiconductor, Inc., Tsugaru Factory (Front-end line) Goshogawara-shi, Aomori Restarted part of its manufacturing Restarted part of its manufacturing from March 20 with limited production capacity
2 Renesas Yamagata Semiconductor Co., Ltd., Tsuruoka Factory (Front-end line) Tsuruoka-shi, Yamagata Restarted part of its manufacturing Restarted part of its manufacturing from March 22 with limited production capacity
3 Renesas Electronics Corporation, Naka Factory (Front-end line) Hitachinaka-shi, Ibaraki Temporarily shutting production Part of its electricity supply restored (for lightings, etc). Started assessing the status of inside the clean room at the 200mm wafer fabrication line, in addition to the 300mm line.
4 Renesas Electronics Corporation, Takasaki Factory (Front-end line) Takasaki-shi, Gunma Preparing to begin startup procedures to restart its manufacturing Plan to begin startup procedures to restart its manufacturing after the planned blackout is terminated
5 Renesas Electronics Corporation, Kofu Factory (Front-end line) Kai-shi, Yamanashi Preparing to begin startup procedures to restart its manufacturing Plan to begin startup procedures to restart its manufacturing after the planned blackout is terminated
6 Renesas High Components, Inc. (Back-end line) Tsuruta-cho, Aomori Restarted its manufacturing Restarted its manufacturing from March 19 during the time when there is no planned blackout being implemented
7 Renesas Northern Japan Semiconductor, Inc., Yonezawa Factory (Back-end line) Yonezawa-shi, Yamagata Restarted its manufacturing Restarted its manufacturing from March 19 during the time when there is no planned blackout being implemented
8 Renesas Eastern Japan Semiconductor, Tokyo Device Division (Back-end line) Oume-shi, Tokyo Restarted part of its manufacturing Restarted part of its manufacturing during the time when there is no planned blackout being implemented. Plan to restart all manufacturing processes from April 1.


Toshiba's semiconductor and other facilities in Japan:

Production facilities (excluding offices and sales branches)

1) The following Toshiba Corporation production facilities are operating normally, although some sustained minor damage.
Semiconductor facilities: Yokkaichi Operations (Mie Pref.) and Oita Operations (Oita Pref.)
Social Infrastructure facilities: Keihin Product Operations (Kanagawa Pref.), Hamakawasaki Operations (Kanagawa Pref.) , Fuchu Complex (Tokyo) , Komukai Operations (Kanagawa Pref.)
Digital Products facilities: Fukaya Operations (Saitama Pref.), Ome Operations (Tokyo)

2) The status of major Group companies in Tohoku and Northern Kanto which are now in the process of recovering operations is as follows.

Iwate Toshiba Electronics Co. Ltd., (location: Kitakami City, Iwate Pref.) will start to ramp-up production lines from March 28. To minimize impacts on customers, Toshiba has started to provide support at alternative production facilities, such as Oita Operations (Oita Pref.), Himeji Operations-Semiconductor (Hyogo Pref.) and Kaga Toshiba Electronics Corporation (Ishikawa Pref.).

Toshiba Mobile Display Co., Ltd. (Fukaya City, Saitama Pref.), a wholly-owned subsidiary and manufacturer of mid- and small-sized LCD displays, expects to take about a month to secure recovery of its manufacturing line in Fukaya. The company started to supply some products alternatively from the Ishikawa Works, the company's another production facility located in Ishikawa Prefecture.

3) With respect to procurement, Toshiba continues to promote detailed investigations of the status of suppliers in order to determine the extent of the impact on production. Every effort is being made to secure materials and parts and to minimize impacts on production: Toshiba is investigating available stock, including channel inventory, parts and half-finished goods; negotiating with suppliers to switch production to locations outside the affected region; and promoting adoption of substitutes. Toshiba Group will also support the earliest recovery at suppliers with damaged manufacturing facilities by supplying necessary equipment and components.
5. Effects of rolling power outages

Toshiba Corporation is implementing various measures to save energy for reducing power consumption at its offices and production facilities, that include utilization of in-house power generation systems. Facilities in areas subject to rolling power outages are basically operating as usual except for the hours of outages. If the need arises, we will transfer part of the dates of operations to holidays.

Toshiba also announces 700 Engineers Called to Action and 100 Engineers Deployed to the Fukushima Daiichi and Daini Power Plants

 

Fujitsu's semiconductor and other facilities in Japan:

Damage Situation and Recovery Process

In accordance with the Fujitsu Group's disaster recovery measures, a disaster response headquarters has been established, with President Masami Yamamoto acting as head chief, to collect information on the safety of all Fujitsu Group employees and on the extent of damage sustained by Fujitsu Group facilities and its customers. Damages to buildings and production equipment including the ceilings, walls, and drain pipes of the Fujitsu Group's plants and offices have affected business operations. Furthermore, planned rotational electricity blackouts have affected operations of Fujitsu Group companies based in the Kanto region of Japan.

Main Fujitsu Group Companies in the Tohoku Region with Damages to Buildings and Production Equipment

Iwate Prefecture
Fujitsu Semiconductor Limited - Iwate plant (Kanegasaki-cho, Isawa-gun)

Miyagi Prefecture
Fujitsu Integrated Microtechnology Ltd. - Miyagi plant (Murata-cho, Shibata-gun)

Fukushima Prefecture
Fujitsu Semiconductor Limited - Aizu-Wakamatsu plant (Aizu-Wakamatsu-shi)
Fujitsu Semiconductor Technology, Inc. - Main plant (Aizu-Wakamatsu-shi)
Fujitsu Integrated Microtechnology Ltd. - Main plant (Aizu-Wakamatsu-shi)
Fujitsu Isotec Limited - Main plant (Date-shi)
2. Amount of Loss and Effects on Profits

The amount of loss and effects on profits as a result of the earthquake are currently unknown. Fujitsu will promptly make an announcement should these effects be significant.

The Fujitsu Group sincerely hopes for the speediest possible recovery to everyone in the regions affected by this disaster.
Fujitsu has also announced that recruitment activities scheduled for April 1, 2011, have been postponed to June 1, 2011, due to the large-scale damage caused by the devastating Tohoku earthquake. The schedule change was made official to make the recruitment process a fair one for all applicants throughout Japan, particularly for those who are affected by this earthquake.

There will be no changes to the hiring headcount of 540 new employees (170 non-technical staff and 370 technical staff).

Asahi Kasei Group:
The effect of this earthquake on the Asahi Kasei Group is as follows.


1. Effect of the earthquake on production operations
1)The following plants are currently out of operation due to effects of the earthquake such as power outage, suspension of water supply, damage to buildings and facilities, etc. Forecast for the resumption of operations cannot be made at this time.

Asahi Kasei Construction Materials Corp. Sakai Plant and Neoma Foam Plant (Ibaraki Prefecture)
Asahi Kasei Toko Power Devices Corp. Ishinomaki Plant (Miyagi Prefecture)
Asahi Kasei Metals Ltd. Tomobe Plant (Ibaraki Prefecture)

2) Damage to construction sites of Asahi Kasei Homes Corp. is currently under investigation.

2. Effect of rolling blackouts planned by Tokyo Electricity Power Company (TEPCO)
1) The following plants are subject to power outages as part of the program of rolling blackouts which has been announced by TEPCO. We are currently examining the specific response to be taken in the event that such power outages are implemented.


Fuji Region (Shizuoka Prefecture)

Asahi Kasei Chemicals Corp. Microza Plant, Asahi Kasei Pharma Corp. Fuji Pharmaceuticals Plant, Asahi Kasei Microdevices Corp. Fuji Plant, Asahi Kasei E-materials Corp. Electronics Interconnecting Materials Plant, Electronics Materials Plant, and Photoproducts Plant, and Asahi Kasei Epoxy Co., Ltd. Fuji Plant
Asahi Kasei Pharma Corp. Ohito Plant (Shizuoka Prefecture)
Asahi Kasei Color Tech Co., Ltd. Mibu Plant (Tochigi Prefecture)
Asahi Kasei Pax Corp. Gunma Plant (Gunma Prefecture) and Ageo Plant (Saitama Prefecture)
Asahi Kasei Technoplus Co., Ltd. Saitama Plant (Saitama Prefecture)
Asahi Kasei Toko Power Devices Corp. Tateyama Plant (Chiba Prefecture)

2) Effect on construction sites of Asahi Kasei Homes Corp. is currently under investigation.

3. Impact on financial performance
The impact of this earthquake on consolidated financial results of the Asahi Kasei Group is unclear at this time. An announcement will be made promptly in the event that a material impact is anticipated.


Shin-Etsu (silicon industry material supplier):

Current situation of Shin-Etsu Group's plants being out of operations

As of 1:00p.m., March 17 (Japan Time), all of operations at both Shin-Etsu Chemical Kashima Plant (Kamisu, Ibaraki Pref.) and Shin-Etsu Handotai Shirakawa Plant (Nishigo Village, Fukushima Pref.) are being wholly halted. Although the aftershocks have been frequently occurring, we are to carry out necessary inspections at our plants putting the utmost priority on safety.

Regarding the situation of Shin-Etsu Handotai Shirakawa Plant, although inspection work is being interrupted under such circumstances as above, damages of the production facilities and equipments were found on inspections. At present, it is still unclear how long it takes to restore such damaged facilities and equipments. For the time being, we will set up production systems at other plants of Shin-Etsu Handotai Group, which are currently continuing operations, except for Shin-Etsu Handotai Shirakawa Plant, so that we may respond to the current situation.

As for Shin-Etsu Chemical Kashima Plant, we are continuing inspections of the production facilities and equipments and some damages have been found until now. The Kashima Plant is located in the Kashima industrial complex facing to the Kashima Port. Since the damages are found in the facilities of the Kashima Port and the utilities such as electric power and water supply in the Kashima industrial complex, it is still unclear how long it takes to restore the Kashima Plant at present.

Furthermore, the rolling blackouts implemented by TOKYO ELECTRIC POWER COMPANY and Tohoku-Electric Power Co.,Inc., are affecting the operations at Shin-Etsu Group's production sites located in their respective electric power supply areas. We will cooperate for reduction and restriction of the usage of electric power with all the Company efforts.

We will continue to implement necessary inspections and do our utmost for recovery. We will announce the updated information if any situation has changed.

 

 

Nikon Corp:
Damage to the manufacturing equipment and outlook on the future production

One of our own plants and seven of our manufacturing subsidiaries are located in Miyagi Prefecture, Tochigi Prefecture and Ibaraki Prefecture in the disastrous region*. Operation has been suspended at all of them after the earthquake.
At Tochigi Nikon Corporation, operation has started from Friday, March 18.
At Sendai Nikon Corporation and Miyagi Nikon Precision Co., both of which have been severely damaged, operation is expected to resume by the end of this March. Operation at the remaining facilities will start tomorrow on March 23.

Even after operation resumes, we have a concern that the situation may happen where our production cannot fully satisfy our customers' requirement due to inability of full swing production caused by problems such as the planned blackouts of electricity and procurement of components from our business partners. While we will do our utmost effort to overcome such expected difficulties, we will be most grateful if our customers could understand such circumstances.

We assure to extend our best support for restoration of the facilities hit by the disaster to our customers of Precision Equipment and Instruments business, and repair/servicing to our customers of Imaging business suffering from the disaster.
Forecast of effect by the damage to our business performances

We are continuing our endeavor to evaluate how the immediate damage by the disaster and planned blackouts of electricity will result in our group companies and business performances. We will announce our findings immediately when it is judged that there will be important change in our forecast.

* Locations of each plant and manufacturing subsidiaries
Mito Plant, Nikon Corporation : Mito,Ibaraki Pref.
Sendai Nikon Corporation : Natori, Miyagi Pref.
Miyagi Nikon Precision Co., Ltd. : Zao-machi, Katta-gun, Miyagi Pref.
Zao factory, Nikon-Trimble Co., Ltd. : Zao-machi, Katta-gun, Miyagi Pref.
Tochigi Nikon Corporation : Otawara, Tochigi Pref.
Tochigi Nikon Precision Co., Ltd. : Otawara, Tochigi Pref.
Kurobane Nikon Co., Ltd. : Otawara, Tochigi Pref.
Nasu Nikon Co., Ltd. : Nasukarasuyama, Tochigi Pref.

 

Applier Materials:
Applied Materials has shared the info that there is no material impact on Applied Materials through its 2nd quarter but still not clear about the coming quarter and changing situation.

 

Sony Corporation:
Sony has confirmed the safety of all of its and its group companies' employees in the region affected by the earthquake and tsunami. The Company has resumed manufacturing operations at several of the manufacturing sites where manufacturing operations had been suspended as a result of damage caused by the earthquake, tsunami and related power outages. Recovery plans to resume operations at most of the remaining manufacturing sites damaged by the earthquake and tsunami have already begun to be implemented. At the same time, manufacturing operations at certain manufacturing sites that sustained no direct damage are now being affected by planned power outages as well as shortages of raw materials and components, causing those sites to temporarily suspend a part of their operations. The current situation of each manufacturing site of Sony Group in Japan is set forth below.

The Company is continuing to evaluate the full impact of the earthquake, tsunami and related power outages on Sony's businesses and consolidated financial results.


Sony Manufacturing Systems Corporation, Kuki Plant (Saitama Prefecture) <Surface mounting equipments, etc.> - Resumed on March 15, 2011.

Sony Chemical & Information Device Corporation, Kanuma Plant (Tochigi Prefecture)
<Bonding Materials, Optics Materials, etc.> - Partially Resumed on March 15, 2011.

Sony Energy Devices Corporation, Tochigi Plant (Tochigi Prefecture) <Lithium ion secondary batteries, etc.> - Partially Resumed on March 22, 2011.

While manufacturing operations at the following manufacturing sites remain suspended, the Company has begun inspection, restoration and repair of affected buildings and manufacturing equipment:

Sony Chemical & Information Device Corporation
- Tagajyo Plant (Miyagi Prefecture) <Magnetic tapes, Blu-ray discs, etc.>
- Tome Plant, Nakada/Toyosato Sites (Miyagi Prefecture) <Optical devices, IC cards, etc.>
Sony Shiroishi Semiconductor Inc. (Miyagi Prefecture) <Semiconductor lasers.>
Sony Energy Devices Corporation, Koriyama Plant (Fukushima Prefecture) <Lithium ion secondary batteries, etc.>
Sony Energy Devices Corporation, Motomiya Plant (Fukushima Prefecture) <Lithium ion secondary batteries, etc.>
Sony DADC Japan Inc., Ibaraki Facility (Ibaraki Prefecture) <CDs, DVDs, etc.>


[ Manufacturing Operations Temporarily Suspended primarily due to planned power outage, now Resuming Intermittently ]

The Company is intermittently resuming manufacturing operations at the following site on March 22, 2011, which had no direct damage caused by the earthquake and tsunami but had suspended operations temporarily primarily due to planned power outages. However, it may have to suspend manufacturing operations temporarily again, depending on the planned power outage situation.

Sony EMCS Corporation
- Kisarazu Technology Center (Chiba Prefecture) <Blu-ray disc recorder, home audio, etc.>

[ Manufacturing Operations Scheduled to be Temporarily Suspended Depending on Availability of Raw Materials and Components ]

While the following manufacturing sites were not directly damaged by the earthquake and tsunami, the Company plans to temporarily suspend certain parts of its manufacturing operations at these sites on and after March 22 through March 31, 2011, depending on the availability of necessary raw materials and components. The Company intends to resume manufacturing operations at each of those sites as it secures raw materials and components.

Sony EMCS Corporation
- Tokai Technology Center, Kosai Site (Shizuoka Prefecture) <Broadcast and professional equipment>
- Tokai Technology Center, Kohda Site (Aichi Prefecture) <Camcorders, digital still cameras, etc.>
- Tokai Technology Center, Minokamo Site (Gifu Prefecture) <Lens for digital single-lens reflex cameras, cell phones, etc.>
- Tokai Technology Center, Inazawa Site (Aichi Prefecture) <LCD TVs, etc.>
Sony/Taiyo Corporation (Oita Prefecture) <Microphones, headphones, etc.>

At this time, Sony will endeavor to maintain supplies of the listed products in the market through reliance on existing inventory, to the extent available. While Sony is making every effort to resume normal operations at these sites, in the event shortages of necessary raw materials and components at these sites will continue, the Company is considering alternatives, including possibly temporarily shifting certain manufacturing operations overseas.


[ Manufacturing Operations at Other Sites ]

All manufacturing sites in Japan other than those described above are currently maintaining normal operations and plan to continue such operations, although the Company will continue to monitor the availability of raw materials and components for their operations.

 

Amkor Technology:

Amkor Technology Inc. announced that its manufacturing facility in Kitakami, Japan, located about 260 miles northeast of Tokyo, has suffered relatively minor damage in last week's earthquake.

"We are very relieved that there have been no reports of any injuries to our employees," said Ken Joyce, Amkor's president and chief executive officer. "We express our sympathies to the victims of the earthquake and tsunami, as well as to our Japanese colleagues and the nation as a whole."

The Kitakami facility is Amkor's smallest operation in both units and revenue, generating approximately $10 million to $11 million of monthly sales prior to the earthquake. The Kitakami facility only provides services to a few Japan-based customers.

Japan is a major supplier of semiconductors, silicon wafers, specialty chemicals, substrates, equipment and other supplies to the electronics industry, and the industry is currently evaluating the potential effect of the earthquake on the overall supply chain for electronics. Since the earthquake, we have been in close communication with our customers, suppliers and OEMs to analyze the situation and evaluate alternative sources of supply where appropriate.

Like many companies in the semiconductor industry supply chain, we operate with multiple suppliers from different geographic regions. This diversification is intended to help mitigate any potential disruptions from events such as these. However, it is too early to comment on the broader impact the earthquake may have on the electronics industry and our business and operations.

Murata:
Murata has maintained special communication lines between the crisis center and the Tome plant. In addition, the internal phone lines have been restored at the Kanazawa Murata Sendai Plant and the Murata Oyama Plant. We will continue sending emergency supplies to the cities of Tome and Sendai.

All plants hereunder have stopped operations. We will notify you when we have confirmed a restoration schedule.

Tome Murata Manufacturing Co., Ltd.
Address 11-1, Nakae 4-chome, Sanuma, Hasama-cho, Tome-shi, Miyagi 987-0511 Japan
Products Wire Wound Type EMI Suppression Filters, Coils

Damage situation At present, we are confirming the details of the disaster, but we have noticed damage to some of our buildings and equipment. As of this afternoon, electricity has been restored, and we are making progress on preparations for restoring the buildings and equipment. We will inform you of the restoration status of other lifelines as well as the resumption of production schedule once it is confirmed.


Kanazawa Murata Manufacturing Co., Ltd. Sendai Plant
Address 2-6, Akedori 3-chome, Izumi-ku, Sendai-shi, Miyagi 981-3206 Japan
Products Piezoelectric Products and SAW filters
Damage situation There was no significant damage to our buildings or equipment, but the lifelines of electricity (production use) , water and gas are still unavailable. We will inform you of the restoration schedule once it is confirmed. If the restoration takes longer than expected, the plan is for products to be sent from the Kanazawa Murata Plant instead.


Murata Manufacturing Co., Ltd. Oyama Plant
Address 1-480, Inuzuka, Oyama-shi, Tochigi 323-8678 Japan
Products Polymer Capacitors
Damage situation We are making preparations to restart operations now, but if power cannot be obtained due to planned blackouts or other reasons, it will be some time before the restoration can be completed. We will inform you of the projected restoration schedule once it is confirmed.

ROHM and OKI Semiconductor:
OKI Semiconductor Co., Ltd. (Hachioji City, Tokyo), ROHM Yokohama Technology Center (Kohoku-ku, Yokohama) are not affected by scheduled power outages of the Tohoku Electric Power Company.
ROHM Tsukuba Co., Ltd. (Tsukuba City, Ibaraki) <Operations suspended due to earthquake>

Ericsson:
Ericsson stated: "Although it is too early to get an accurate picture of how Japanese enterprises are affected, and how this affects Ericsson and the industry, no material impact on Ericsson's sales are expected for Q1 2011."

"We will continue to closely monitor the situation in Japan to take further action where necessary. It is however too early to draw any further conclusions before we fully can assess the situation."


TriQuint Semiconductor:
None of TriQuint's physical manufacturing facilities are affected. We do not have any manufacturing assets or subcontracting in Japan.

We have several component and raw material suppliers that manufacture in Japan, and this is what we are focused on. TriQuint carries several weeks of inventory of most critical components, so at this point there are no immediate production interruptions due to material supply.

As we identify any key supply interruptions originating from Japan, we will work with our supply chain to utilize any options available (alternate factories, sources, etc).
Because this is a dynamic situation, we will update any new information as soon as we become aware. Specifically, if we learn of any impact to customer delivery schedules, we will be in touch immediately.


austriamicrosystems:

austriamicrosystems has neither production activities nor subcontractors in Japan. All our wafer production, test and assembly partner facilities are located outside of Japan. Therefore austriamicrosystems sees no immediate impact on its wafer production, assembly and test services from the recent events in Japan.

austriamicrosystems sources the vast majority of its raw wafer needs from suppliers outside of Japan and currently sees no specific impact on its wafer sourcing plans.

 

Qualcomm:
Based on a review of our extended semiconductor supply chain, we do not foresee any significant impact in our ability to supply product to our customers due to the events in Japan. Qualcomm has multiple, geographically diverse sources for supply as well as production processes specifically designed to enable us to mitigate disruptions in our supply chain.

With regard to the availability of Bismaleimide Triazine (BT) resin, Qualcomm uses either BT-based or epoxy-based laminate materials in our chipset packages. To account for any potential disruption in BT supply, we believe our use of buffer stock and adjustments to our near term material mix will enable us to mitigate potential supply disruptions to our customer base.

 

 

Elpida:

Elpida provided the following business status report based on information available as of March 12:

Hiroshima Plant: The Hiroshima Plant suffered little impact because it is located in Hiroshima in the southwest of Japan, far from the northeastern regions struck by the earthquake.
As of the morning of March 12 the Plant is operating normally without any need to scrap wafers due to seismic effects.

Akita Elpida Memory: The Akita Elpida plant is not in operation as of the time of this announcement due to power shut down caused by the earthquake. As soon as the electricity comes back on, normal business operations can be resumed. There is no damage to the manufacturing equipment.

Materials: Elpida is working to communicate with suppliers but available information is currently insufficient. The company will continue to gather and analyze all information from suppliers.

Passive component maker Rubycon:

Akita Rubycon
As informed yesterday, the factory is in normal operation.
Fukushima Rubycon
The examination of the machines and facilities has been completed and the factory is about to resume normal operation.
Niigata Rubycon
The factory is in normal operation.

 

Advantest:
Advantest Corporation has announced that it incurred minimal damage from the Northeast Japan Earthquake of March 11, 2011. The company's major domestic facilities resumed operation on Monday, March 14.

Advantest Laboratories, an R&D facility located in Sendai, sustained no serious damage, based on currently available information. The company is presently seeking to confirm the safety of employees and their families in the area. No injuries or deaths were reported among employees elsewhere in the country as of today.

The following facilities resumed operation on Monday: the Gunma Factory Gunma Factory 2, and Gunma R&D Center, in Gunma Prefecture; and the Saitama R&D Center, in Saitama Prefecture. Advantest will make every effort to minimize the impact on operations and production schedules of the rolling blackouts the country is currently experiencing.

 

KEMET:
KEMET Corporation announced that its operations have not been affected following Friday's magnitude 8.9 earthquake and resulting tsunami that left towns and villages in Japan devastated.

"In response to many inquiries from both our customers as well as analysts following our company, we want to confirm that KEMET's worldwide operations have not been affected by the Japan Earthquake and Pacific Tsunami," stated Per Loof, KEMET's Chief Executive Officer. "We are not aware of any issues in our materials supply chain as a result of the disaster. Therefore, our customers can expect no impact in our ability to fulfill orders. All of us at KEMET are keeping those affected by this horrific tragedy in our thoughts. We have been in contact with many of our Japanese colleagues offering both support and solace. KEMET is contributing to the American Red Cross National Disaster Relief Fund in support of their work in helping in the recovery of this disaster," continued Loof.


Torex:

The majority of our production plants are located in the South of Japan well away from the danger zone and these are operating normally.

Two of our production partners do have factories closer to the earthquake zone and both have reported some damage as a result of the quake.

Agilent :

"While we are, of course, greatly concerned by the events of last night, I want to let Agilent's business partners know we expect no major impact to our operations," said Bill Sullivan, Agilent president and CEO.


Sanken:

Earthquake off the coast of Sanriku and its impact on Sanken
None of the buildings of Yamagata Sanken Co., Ltd. (Higashine, Yamagata),
Fukushima Sanken Co. Ltd. (Nihonmatsu, Fukushima) and Kashima Sanken Co. Ltd.
(Kamisu, Ibaragi) sustained damages.
The operations in the 3 production sites above are currently on halt.
The damages to production equipments are now being reviewed at the 3 facilities
above.
Other Sanken facilities are in normal operation.
IR Office
Sanken Electric Co. Ltd.


Everlight:
Everlight Electronics said so far does not have noticeable impact on Everlight Electronics' supply chain. Everlight's global sales continues to operate normally. Going forward, Everlight willclosely monitor the situation with suppliers to ensure a stable demand fulfillment.


Information from Analyst companies:

IHS iSuppli:

Manufacturing operations have stopped at Shin-Etsu Chemical Co. Ltd.'s Shirakawa facility. MEMC Electronic Materials Inc. also stopped manufacturing at its Utsunomiya plant. Together, these two facilities account for 25 percent of the global supply of silicon wafer used to make semiconductors. Wafers are thin slices of silicon that serve as the substrate of semiconductor devices. All semiconductors are built on wafers.

The facility in question Shirakawa facility produces large 300mm wafers, which are used in more advanced semiconductors that have high transistor counts. The wafers made by this facility mainly are used in the manufacturing of memory devices, such as flash memory and DRAM. Because of this, the global supply of memory semiconductors will be impacted the most severely of any segment of the chip industry by the production stoppage. Logic devices represent the next largest use of these wafers.

These companies supply not only domestic Japanese demand for wafers but also semiconductor manufacturers around the world. Because of this, the suspension of operations at these plants could have wide-ranging implications beyond the Japanese electronics industry. A 25 percent reduction in supply could have a major effect on worldwide semiconductor production.

Shin-Etsu's Shirakawa plant is responsible for 20 percent of global silicon semiconductor wafer supply. The plant is located in Nishigo Village, Fukushima Prefecture Shin-Etsu reported that there has been damage to the plant's production facilities and equipment. To compensate for the lost manufacturing, Shin-Etsu said it would set up production systems at other facilities. However, the company warned it was unclear how long it would take to restore the damaged facilities and equipment.

MEMC said it evacuated employees and suspended operations at its Utsunomiya plant after the earthquake. The Utsunomiya facility accounts for 5 percent of worldwide semiconductor wafer supply. MEMC said it expects that shipments from this facility will be delayed during the near term.

In another development for the global electronics supply chain, two Japanese companies announced they have stropped production that amounts to 70 percent of the worldwide supply of the main raw material used to make printed circuit boards (PCBs). PCBs are used in all electronic products, from PCs to smart phones, to digital wristwatches.

The companies, Mitsubishi Gas Chemical Co. Inc. and Hitachi Kasei Polymer Co. Ltd, said they will resume production within two weeks of the raw material called copper-clad laminate (CCL).

However, with current inventory levels, IHS iSuppli believes that there likely is sufficient supply of finished PCBs and raw CCL material to keep electronics production lines running at global electronics manufacturers, as long as the interruption doesn't last significantly longer than two weeks.

Elpida Memory Inc. said its semiconductor assembly facility in Yamagata has been damaged. The company also said a lack of electricity is impacting production. The Yamagata facility's utilization rate now is at less than 50 percent.

Confirming what IHS iSuppli noted in a previous release, AKM Semiconductor said its fab producing electronics compasses for the iPad 2 has not been damaged. The main fab for the production of the compass is located in Nobeoka, on the South island of Japan and did not suffer any power cut either.

IHS iSuppli had warned the company's delivery of products potentially could be affected by the same logistical and power supply issues impacting all Japanese industries. AKM has noted that it already uses multiple fabs including one external source for the fabrication of its compass. Also the compass is fabricated using standard CMOS process and the production can easily be transferred to any CMOS foundry in the world. The company said this should enable AKM to overcome logistical hurdles that may arise.

The earthquake has damaged about 40 percent of the total wafer capacity of Renesas Electronics Corp. The company has stopped production at its Tsugaru fabs producing analog and discrete devices, at its Naka facility making system-on-chip and microcontroller devices, and at its Takasaki and Kofu fabs making analog and discrete parts.

Half of the total wafer capacity at Fujitsu has been damaged. While the company's fabs and wafer equipment are intact, the shortage of electricity, gas and wafers means it will take three or four weeks for the company to recovery production.


DRAMeXchange:

According to DRAMeXchange, a research department of Trendforce, an earthquake with a magnitude of 9.0 hit Tohoku Japan on March 11th. This devastating earthquake has brought changes to the NAND Flash market. However, information on the power and transportation infrastructures damaged by the Earthquake remain incomplete, DRAMeXchange has made some comprehensive assessments based on the available information as following.

Buyers who expected a potential shortage of NAND Flash initiated a speculative buying. Consequently, led to a panic surge in spot prices and an approximately 5 percent to 15 percent increase in 1H'March NAND Flash contract average selling price. Two major uncertainties in the supply chain are first the raw material from IC upstream vendors and the condition of Toshiba Yokkaichi NAND Flash plants.

1) Some IC raw material and equipment vendors were located in the Tohoku and Kanto area of Japan, a limited power supply and damages on the major highways brought uncertainty to the production of NAND Flash. Especially, the Shin-Etsu Chemical plants located in Fukushima and Shirakawa were shut down for safety inspection. Another global major supplier of silicon wafer, Sumco, its Yonezawa plant was also shut down. Moreover, the crash of Fukushima nuclear power plant continued to cause major problem in the local power supply.

Japan is part of the Circum-Pacific Seismic Zone, for that reason Japanese semiconductor equipments and facilities were designed to withstand some magnitude of earthquake. As a result there were no severe damages on most local IC-related manufacturers. On the other hand, the limited power supply became a major concern among affected manufacturers. It is common for NAND Flash makers to diversify their source of silicon wafer and usually they sustained a six to eight weeks of inventory.

If Shin-Etsu Chemical, one of the major silicon wafer supplier in the world, Shirakawa plant can be back on track within a month. The production of NAND Flash is unlikely to be affected. Based on the help from many countries and Japanese attitude of calm, co-operation and perseverance, Japan demonstrated its ability in recovering soon after disaster; the limited power supply is expected to be solved shortly. Further, NAND Flash makers tend to adopt lithography equipments from non-Japan vendors for most of the 2ynm and 1xnm process technologies, thus it will have little effect on the future production of NAND Flash.

2) As a joint venture of Toshiba and SanDisk, the Yokkaichi NAND Flash plants (Fab3 and Fab4) were located 500 miles away from the epicenter and were hit with a mild earthquake with a magnitude of 2 to 3. There were no major damages on the facilities and equipments and after a temporarily inspection, production was back to normal last Friday. However, some wafers were reported destroyed from the earthquake, we estimated the damage may reduce below 10 percent of the total Toshiba/SanDisk output in 1H2Q11.

In short, given no additional supply increase from other NAND Flash suppliers, the earthquake may reduce the global NAND Flash bit supply by less than 4 percent in 2Q11.

The supply from Toshiba/SanDisk camp declined, and possibly brought a favorable outlook to the traditionally dull sales season of 2Q11. However, the shipment of some non-iPad tablet may not reach the original 2Q11 expectation. Also, from March to June is traditionally the recessing sales season of retail memory and UFD card market, plus a weaker demand from the NAND Flash end-product applications in Japan market in the short term.

It is unfavorable to the shipment and sales of NAND Flash end-products if some key components and raw materials should face the shortage or surge in price. Thus, given the factors mentioned above, DRAMeXchange expects the over-supply gap in 2Q11 may be narrowed by the mixed effects from the earthquake.

DRAMeXchange expects NAND Flash spot price to sharply increase due to the uncertainty in supply, right after the earthquake. Nevertheless, the market is rational after the uncertainties being clarified, the price will keep stable and mainly reflect the true supply and demand status in 2Q11.

As affected manufacturers and power and logistic infrastructures recover from the earthquake in 2Q11, the affected NAND Flash supply will also be improved. With the traditional recessing sales season in mid-2Q11, all these factors together will cause price to go down. The earthquake changed the originally declining NAND Flash price into a sharp rebound in mid-March. Lastly, DRAMeXchange expects the decline in the annual NAND Flash contract average selling price may be eased slightly in 2011.

Semico Research:

The Semico Fab Database lists over 100 fabs in Japan. Freescale has a fab in Sendai, although our records indicate the company intends to close the Sendai fab by the end of this year. The fab produces microcontrollers and sensors. Renesas seems to be enduring the most impact as they maintain several fabs in the Tokyo area. The company has closed several fabs indefinitely. Renesas is a major microcontroller supplier.

Toshiba, a key NAND supplier, maintains its Flash Alliance and Flash Partners fabs in Yokkaichi in the Mie Prefecture over 200 miles south of Tokyo. While Toshiba shut down a number of fabs for inspections, they are now back in production. Toshiba is SanDisk's main manufacturing partner. Most of the other semiconductor fabs are located in the southern regions of Japan.


Semico believes the quake may have significant impact on Japan's semiconductor production this quarter, but the impact should be minimal as it relates to total world production for the year.

The good news is that it is early in the year, and there is still time to recover for the peak production months of electronic products that typically occur in the second and third quarters of each year. Toward the end of last year, inventories were starting to grow, and there was a concerted effort by companies to reduce inventory levels. It would now appear that a little bit of excess inventory in products that come from Japan will be a windfall for those companies.

There could be a short term positive impact for GLOBALFOUNDRIES. Companies may review the vulnerability of their foundry supply partners susceptible to earthquakes. GLOBALFOUNDRIES' multiple fab locations is a definite plus. But our memories are short. Even after the 1999 earthquake in Taiwan, companies continued to utilize the foundries in Taiwan.

Japan is a significant consumer of semiconductors. According to SIA/WSTS data, Japan accounted for 19 percent of total worldwide discrete sales and 14 percent of total IC sales. This represents Japan's semiconductor consumption and has significant impact on production of electronic systems. Production of automobiles, consumer electronics and certain industrial parts for aircraft and heavy equipment could be delayed.

Apple iPad supply chain impact analysis by IHS iSuppli:

The compass and glass supply could prove to be more problematic issues for Apple. Although AKM said its fab that produces the electronic compass used in the iPad was undamaged by the quake, the company's shipments are likely to be impacted by the same logistical issues that will plague all Japanese industries during the short term.

Compasses are available from other sources including Yamaha, Aichi Steel, Alps and STMicroelectronics. However, these components are not easily replaceable.

"The calibration of electronic compasses is tricky for a number of reasons," said Jérémie Bouchaud, director and principal analyst for MEMS and sensors at IHS. "Compasses are sensitive to electromagnetic interference. Furthermore, the iPad 2's compass works in close coordination with the tablet's accelerometer and gyroscope. This makes it impossible to simply replace one manufacturer's compass with another."

The glass used in the iPad 2's touch screen overlay could present another supply problem for Apple. While the supplier of this glass cannot be confirmed with certainty, the concurrent release of the iPad 2 and the new Dragontrail Glass technology from Asahi Glass of Japan has led to speculation that Asahi may be the supplier of this durable new glass, according to Kevin Keller, principal electronics analyst for IHS.

Physical tests conducted by IHS reveal that the iPad 2 glass is more flexible and durable than the glass used in the iPad 1, possibly indicating that the glass is Asahi's Dragontrail.

Asahi Glass reported damage to two of its facilities and damage at a third.

The lithium-ion polymer battery in the iPad 2 also is manufactured in Japan, the IHS iSuppli Teardown analysis service has determined.

The iPad 2's three-cell battery pack on the iPad 2 is labeled "assembled in China." However, this label refers to the whole battery pack. Further investigation showed the battery itself was made by Apple Japan, which operates as a subsidiary of Apple.

"Typically, battery cells are made at the site of assembly but because the iPad 2's lithium-ion polymer battery is unusually thin, it likely requires advanced battery cell manufacturing technologies that reside in Japan," said Wayne Lam, senior analyst, competitive analysis, at IHS.

Logistical disruptions may mean that Apple could have difficulties obtaining this battery, and it may not be able to secure supply from an external, non-Japanese source.

 

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