A lot of tech components still come from Japan, and therefore the earthquake- and tsunami-related crisis could affect production volume, potentially slowing down manufacturing.Apple and other big companies could be affected.
Here’s a summary that FBR Capital Markets analyst Craig Berger just sent out to clients:
“First, we see risks of shortages in NAND flash memory chips (Sandisk, Toshiba, Micron) and CMOS image sensor chips (Omnivision), with both products meaningfully shipping into the Apple supply chain (Broadcom exposed here).”
“Also, touchscreens volumes could be impacted in the near-term, possibly gating iPad 2 or other device production.”
“Our contacts in Asia suggest one of the bigger problems may actually be the growing shortage of BT (Bismaleimide Triazine Resin), an epoxy resin that is used in many chip package substrates including PBGA (plastic ball grid array) packages produced by back-end assembly/test firms like ASE, Siliconware Precision (SPIL), and Amkor. BT is almost entirely produced by Mitsubishi Gas Chemical. Shortage of BT resin would most impact Xilinx (50% exposed), Altera (40% exposed), and Qualcomm (30% exposed), according to our sources.”
“Computing chips, on the other hand, would be far less impacted by this shortage.”
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