Storage players weigh Japan tsunami impact

BANGALORE, INDIA: The 8.9-magnitude earthquake and series of major tsunamis that struck Japan on Friday missed its industry hub Tokyo by 230 miles.

However, according to reports from Japan, the country's automobile manufacturers, ship builders, semicon makers and storage players were not spared either.

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Japan houses several major storage players such as Hitachi Data System, Fujitsu, Toshiba, SanDisk etc.

Fujitsu Ltd's spokesperson in India informed CIOL that though the company is headquartered in Tokyo, the business has been shifted to Germany recently and so the business will not be affected much owing to the tsunami and earthquake in Japan.

However, a Bloomberg report says that the company has halted manufacturing in 10 plants in northern Japan as well as the greater Tokyo region.

"The Japan earthquake was centered near the Miyagi prefecture, North-east of Tokyo. Whereas, SanDisk-Toshiba fabs are located in Yokkaichichi in the Mie prefecture, south of Tokya. The earthquake impact felt at Yokkaichi was modest," said Manisha Sood, County Manager, India & SAARC, SanDisk Corporation.

SanDisk has confirmed that its employees in Yokkaichi are safe. Tokyo operations were stopped and there was some loss of wafers, however, operations have since resumed and are currently operating, but overall impact is still being assessed.

Reuters also reports that a Toshiba plant in Awate appears to have been affected by power outage and there are chances of delivery delays due to problems with road, rail and other transportation.

On the other hand, storage major Hitachi data Systems spokesperson informed CIOL that there have been no major damage to its manufacturing facilities in Japan. Moreover, there should be no disruption in supplying products as well, as it has inventory available in many other parts of the world. Also, its customer support will be unaffected and will continue globally on a 24x7 basis.

HDS CEO Jack Domme says: "Though the largest damage appears to have occurred in the northern region of Japan, the earthquake and aftershocks were felt throughout the country, including Tokyo. Immediately, we at Hitachi Data Systems, began assessing the situation and working to confirm status of our colleagues."

"I am glad to report that currently we have received reports of only minor injuries but we are still accessing the situation. In addition, the Hitachi Risk Management Office has put into motion standard measures to ensure the highest safety of our employees," he adds.

Although the spokespersons could not give the latest updates, it seems like they are treading a cautious step so as not to give out a wrong vibe, which could have a huge impact in the share market.

Moreover, since many companies are still weighing the impact of the quake and tsunami, it may take a few more days to get a clear picture about the economic impact of the disaster in the enterprises operating from the country.