Japan's chip industry hits 286 billion yuan in global losses

Japan's 311 earthquake and tsunami have caused many manufacturers to shut down factories or reduce production. The computer chip manufacturing industry is almost paralysed and has a negative impact on the global economy.

Japanese media reported that if Japanese manufacturers do not resume production before May, global economic losses may be as high as nearly 500 billion U.S. dollars (about 628 billion U.S. dollars).

Affected by the earthquake and tsunami, many companies and related industries that must use Japanese-made parts face the problem of stagnation.

"The Nihon Keizai Shimbun" quoted the government's estimate that such a chain effect may bring a loss of 470 billion U.S. dollars to the global economy.

Renesas Electronics, the world’s largest micro-controller supplier, was damaged by the earthquake in its plant in Ibaraki Prefecture and had to shut down the plant.

The report pointed out that if the factory does not resume production before the end of this month, it will also affect the global auto manufacturers, causing losses of up to 6.5 trillion yen (S$96 billion).

The Fukushima branch of Shin-Etsu Chemical, the world's leading wafer maker, was also damaged by the earthquake and tsunami and forced to close temporarily.

If the factory still cannot resume operations after 6 weeks, global semiconductor production losses may be as much as 1.5 trillion yen.

As for the possible losses suffered by the flat-panel TV production industry, it will be as high as 400 billion yen. The losses of other related industries such as electronic machinery, telecommunications, internet, and broadcasting total about 32 trillion yen.