Japanese earthquake affects semiconductor panel and PCB industry

ITRI's analysis of the impact of the Ikea on Japan’s land revealed that the Miyagi-Maru earthquake in Japan was used for panel module driver ICs, semiconductor wafers, and printed circuit board (PCB) upstream materials, as well as panel and semiconductor equipment and machinery. The impact of five industries such as parts and components is relatively large. Since major earthquakes occurred in the non-industrial northeastern region of Japan, the related industrial losses should not be too serious; the greatest impact on China's related industrial chains lies in the upstream raw materials and key components of China's electronic information industry.

It is understood that Ibaraki Prefecture in the disaster-stricken area is an important production area for the Hitachi Group and other companies. In addition to Hitachi Works, Hitachi Cable and Hitachi Cable's main production sites are also located nearby. Hitachi Chemical's global market share of ACF used in panel module driver ICs (ICs) is more than 50%, and it is mostly produced in Ibaraki Prefecture; Samsung, LGD, AUO, Chi Mei, Sharp, etc. The panel makers use more than 40% of their ACF's weight. If they are shut down completely, they will affect the panel module driver ICs. China's panel makers are affected more.

In addition, IEK stated that there are three factories on JX Japan (Jinguang), a copper foil plant on the printed circuit board, which is also located in Ibaraki Prefecture. The global market for electrolytic copper foil on JX Japan (Jinguang) accounts for about 5%, but the impact is small, but Its market share in rolled copper foil reaches 75%, and Hitachi Cable also produces rolled copper foil, which, together with the impact of electricity, will be detrimental to the global PCB industry. In the semiconductor wafer sector, IEK believes that China's semiconductor industry as a whole will suffer some impacts. In the short-term, it will face a "risk of material acquisition," which will increase the cost of downstream chip makers. In addition, Japan is the most important source of semiconductor and display processing equipment for the world. Nikon and Canon2 factories all have factories that produce exposure machines in hard-hit areas, which may impact China's semiconductor, display, and other optoelectronics industries.