Reuters | March 14, 2011 | Noel Randewich
(Reuters) – Automakers, shipbuilders and technology companies worldwide scrambled to replace supplies after the disaster in Japan shut down production plants there and disrupted the global manufacturing supply chain.
Technology companies were especially affected since Japan accounts for one-fifth of the world’s semiconductor production, including 40 percent of output for memory chips, used in everything from smartphones, tablets to computers.
Multinationals that buy parts from Japan or have plants located there were tackling problems from reliable power supplies to when roads, railways and ports will reopen after Friday’s devastating earthquake and tsunami in northeastern Japan. Toyota Corp and Sony Corp were among those that have suspended production.
Intel Corp, which buys silicon wafers used for chip manufacturing from Japan, said it often relies on flights and was confident it could manage the disruption.
“The supply chain looks, given the circumstances, pretty good. Right now the main issue is trying to sort through the issues associated with moving materials within Japan,” spokesman Chuck Mulloy told Reuters.
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