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Chip prices rise on Japanese disaster

March 15, 2011

Prices for key technology components continue to rise as damage at Japanese plants and infrastructure caused by the devastating earthquake and tsunami are set to disrupt the global manufacturing chain longer than at first expected.

Research firm IHS iSuppli said the quake and its aftermath could result in significant shortages of some electronic parts and lead to big price hikes.

“While there are few reports of actual damage at electronic production facilities, impacts on the transportation and power infrastructure will result in disruptions of supply, resulting in the short supply and rising prices,” iSuppli said.

“Components impacted will include NAND flash memory, dynamic random access memory (DRAM), microcontrollers, standard logic, liquid-crystal display (LCD) panels, and LCD parts and materials.”

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