February 22, 2025

How is the earthquake in China's hardware industry chain?

Abstract On March 11, 2011, Japan’s magnitude 9 earthquake occurred at 14:46 local time on the 11th, local time, causing many tsunami, with as many as 20,000 deaths and disappearances. Because of the high-tech advantage, mastering the most upstream products and core technologies, so...

On March 11, 2011, Japan’s magnitude 9 earthquake occurred at 14:46 local time on the 11th, local time, causing many tsunami, with as many as 20,000 deaths and disappearances.  

Because of its high-tech advantages and mastering the most upstream products and core technologies, the earthquake occurred in Japan, where the country's land area is less than 4%, but the impact has spread to all parts of the world, especially China. Because of the neighboring countries, trade between China and Japan is frequent. Taking the hardware industry as an example, many Chinese hardware companies have experienced more or less failures.

Then, what is the extent to which the hardware industry chain will be affected by the earthquake, and which hardware sub-categories are affected more? After detailed understanding, the author has compiled the following industries for your reference.

The steel market is short-term positive

Judging from the current statistic data, the earthquake has had a small impact on Japan's large steel production bases: At this stage, the Kamaishi base including Nippon Steel and the Kashima base of Sumitomo Metal are relatively determined to be suspended, with a total impact of 3 million to 4 million. About ton, but there are still some small and medium-sized steel enterprises whose affected capacity is not counted; the short-term impact is more due to the expected tight supply.

Japan is the world's largest steel exporter, and 83% of its steel exports to the Asian region. Regardless of the final capacity affected by Japan, the current earthquake has at least strengthened the expectation of tight steel supply in Asia, which is beneficial to steel prices. 47% of China's imported steel is sourced from Japan, and most of them are concentrated in high-end cold-rolled varieties. The high-end varieties have a high probability of tight supply, and the cold-rolling and other varieties will lead to an increase in demand for hot-rolled substrates.

Construction machinery is not affected much

The impact on the construction machinery industry mainly reflects the two aspects of competition and parts supply. Japan's construction machinery industry is developed, with Japanese brand sales accounting for around 23% of global sales, while China accounts for about 9%. The suspension of production of high-end construction machinery in Japan has not constituted a substantial competitive relationship with Chinese construction machinery companies, and most of Japan's low-end construction machinery has transferred factories to all parts of the world, and its output is not affected.

In addition, according to experts, Japan's post-earthquake reconstruction is preferred as its domestic construction machinery, followed by Japanese companies in factories around the world, and it is estimated that Chinese construction machinery will have less chance of reconstruction in Japan. However, the temporary suspension of production of Japanese construction machinery companies in the short term will have an impact on the supply of spare parts for Japanese construction machinery.

The electronics industry will usher in price increases

Japan is a big country in the production of electronic products. The earthquake will definitely have a greater impact on the global electronics industry. Toshiba's chip factory was shut down due to the earthquake. Unlike the CPU in the computer, Toshiba's chips are used in higher-end products such as mobile phones, flash memory, and automotive automatic control systems. If the agent company can't get the goods, it will definitely hoard the sale. The impact on the price depends on the damage degree and recovery progress of the factory. If the factory can resume operation quickly, the price will not rise greatly; if the factory is shut down for a period of time, then the global chip The price will definitely rise.

The LED industry believes that if the strong earthquakes in Japan cause damage to major panel manufacturers including Sharp, Sony and other production lines, then Japanese panel makers may switch to purchasing LEDTV chips and packaging capacity. Taiwan's LED supply chain includes crystal. Electric, Yiguang, Yuyuan, Dongbei and other manufacturers benefited from the transfer of benefits.

With the acceleration of the globalization process, the current hardware industry is already a "global industry". If a core area has a disaster, it will inevitably lead to a whole body. The earthquake in Japan is only an alarm. In the future, the hardware industry must prepare itself for self-rescue while strengthening contact with various countries, and pay "insurance" for the stability of the industry.

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