Tsunami's impact on tech firms in Japan

BANGALORE, INDIA: The tsunami that hit Japan following the massive earthquake has not only affected lives but it has also hit the technology and electronics companies in the country.

Japan, which plays a central role in the high-tech and consumer electronics industries, is home to heavyweights such as Sony, Toshiba, and Nintendo. Many U.S. and European firms also have operations in Japan.

As per reports many firms in Japan have evacuated and closed plants even as they scrambled to assess the effects on their operations following the earthquake and tsunami that struck the northeastern part of the country.

“There are car and semiconductor factories in northern Japan, so there will be some economic impact due to damage to factories,” Yasuo Yamamoto, senior economist at Mizuho Research Institute in Tokyo, told Reuters.

According to a CNet report, the supply of flash memory chips will likely be affected by the earthquake in Japan. But the factories that manufacture flash are well to the south of the quake's epicenter, possibly mitigating the impact, it added.

Over 40 per cent of the world's NAND flash and roughly 15 per cent of the world's DRAM are manufactured in Japan.

Sony Corp which has six factories, (two in Fukushima, four in Miyagi) in the country, has halted operations and most employees are evacuated. Sony’s one Miyagi factory makes semiconductors; the other three make optical film and various other parts. The two Fukushima factories make batteries.

The company is assessing the fallout from power outages and damages to buildings, he said.

One factory making Blu-ray discs and magnetic tapes in Tagajo City, Miyagi Prefecture, had its ground floor flooded, said Shinji Obana, another Sony spokesman.

According to reports, Japan's biggest-ever earthquake halted production briefly at Toshiba's chip plants on Friday and could delay crucial shipments. However, partner SanDisk said output losses were minor.

Canon Inc, a leader in photographic and digital imaging solutions said there was no damage to facilities or big injuries. However, Fujitsu said there were damages to some facilities but nothing serious and there were no casualties.

According to Bloomberg, Panasonic Corp, which has two factories in Fukushima, producing audio products and digital cameras, said several of its employees at three factories in the Miyagi and Fukushima areas suffered minor injuries.

Meanwhile, Tokyo Electric Power Co said three reactors at Fukushima Daiichi nuclear plant were automatically shut. Cooling systems attached to reactors also down, but does not necessarily result in radioactive leakage. Monitoring shows no radioactive leakage.

It may take some time to get a clear picture of the loss.