Earthquakes in Japan hit computer parts industry

The earthquakes that hit the Japan on the first day of 2024 could have a direct impact on the computer components market. Factories in the sector were impacted and are already beginning to examine losses.

Toshiba, for example, was one of those who spoke out about the case. The brand revealed that it was forced to close one of its NAND memory production factories to analyze the site’s safety and repair damage.

Other companies, such as Taiyo Yuden, Tower, Shin-Etsu, GlobalWafers and TSPCo, also had to temporarily stop semiconductor production.

O earthquake affected the magnitude of 7.6, considered very high. So far, more than 60 deaths have been confirmed. Most of the damage occurred on the Noto Peninsula.

Several roads and bridges were destroyed, making the work of rescuers difficult. In total, more than a thousand Japanese army soldiers are involved in the operation to help the victims.

Japan started 2024 with another serious earthquake – Photo: Reproduction

Damage assessment

Despite the finding that the factories were affected, there is still no clear analysis of the damage suffered. Toshiba works with the prospect that everything will be resumed soon, but continues to assess losses.

In any case, it is important to highlight: if the consequences were very serious, the market could expect weeks or even months of paralysis. And this should directly impact the price rise of the products. It remains to be hoped that the damage has not affected the companies’ structures.

To make matters worse, the earthquake in Japan occurred just as the main names in the NAND memory segment were already preparing to reduce the movement of their production lines.

This coincidence should further amplify the effects on the market. Analysts are already expecting products like SSDs with a price increase of at least 50% in the coming months.