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Japan Supplies 40% of Worlds Tech Components

March 15, 2011

It’s all about the supply chain….no production, dwindling inventories, etc;

Industry Week reports: The economic aftershocks from the massive earthquake off the coast of Japan, the resulting tsunami and a feared nuclear meltdown could hit global production of everything from aircraft to iPads.

With ports, airports, highways and manufacturing plants across Japan shut down, the government has predicted “considerable impact on a wide range of our country’s economic activities.”

Panic selling sent Tokyo shares down 10.55 on worries the nuclear crisis would become a catastrophe Tuesday, after radiation levels near a quake-stricken nuclear plant surged following explosions and a fire. The Nikkei index closed off 1,015.34 points at 8.605.15.

The crisis has led to a huge stock sell-off, with Japanese giants such as Sony and Toyota hit after they were forced to halt production in the country.

Sony dived 6.27%, while Toyota lost 4.83% and Nissan was off 3.6%.

Reactor-maker Toshiba, which fell by its 16% daily limit on March 14, was ask-only.

Singapore bank DBS estimated the quake and tsunami would cost Japan’s economy $100 billion, equivalent to about 2% of its gross domestic product.

And the ripples are just beginning to register in the global economy. Japan manufactures more than 40% of the world’s electronic components, according to brokerage firm CLSA.

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