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Japan Crisis: How this situation affects to the PCH

4 posters

Go down  Message [Page 1 of 1]

rcharindu

rcharindu
Manager - Equity Analytics
Manager - Equity Analytics

"Japan is a dominant player in the microchip market, supplying about 20% of global semiconductors and 40% of flash memory chips.

"While there are few reports of actual damage at electronic facilities, impacts on the transportation and power infrastructure will result in disruptions of supply, resulting in short supply and rising prices," said research firm IHS iSuppli.

Prices for NAND flash chips - critical for smartphones and tablet computers - rose another 3% on Tuesday, following a 20% jump on Monday."
Source:http://www.bbc.co.uk/news/business-12745796

According to the news computer component prices could go up ryt.
So can we expect good news from their next quartet report. what do u think?



Last edited by rcharindu on Tue Mar 15, 2011 9:50 pm; edited 1 time in total (Reason for editing : remove some mistakes)

Genting


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Interesting point....

When you take the semiconductor market, it is mainly led by China and Taiwan.
What made in Japan are mostly used in it's own components, which comes under "Made in Japan".

There is a global shortage in NAND Flash chips. it has been there last few months. crisis in Japan may trigger a short supply to the market.

Coming to PCH and computer related parts, most of these parts are made in china or Taiwan. The made in Japan parts are usually expensive than Chinese or Taiwan parts.

If a short supply happen in semiconductor market, it may get filled with Chinese and Taiwan parts.

Also, there may be a decline in the demand for computer hardware in Japanese market due to their current situation. Hence, there can be increase in supply. Those who sold parts to Japan, may try to sell them to other countries.

Taking the overall situation, one effect may compensate the other and we may not see a significant effect in the computer parts prices.

Rajitha

Rajitha
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

rcharindu wrote:
Prices for NAND flash chips - critical for smartphones and tablet computers - rose another 3% on Tuesday, following a 20% jump on Monday."

PCH does not sell Tablet computers or smartphones so WTF you saying ?
Also how is prices of equipment going up good for them ? If anything that will be bad news for them!

UKboy

UKboy
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

I dont think it will make any significant impac on PCH shares or its turnover. Most of PCH accessories comes from China or Taiwan.

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