The aftershock brought by Japan's 9.0-degree earthquake is no longer confined to the influence on the supply chain of the Japanese-funded enterprises in Dongguan only. Many private enterprises are also beginning to feel the pressure from the upstream supplier.
The chip supply shortage after the tragic earthquake has resulted in the prices jump of electronic components such as memory. At the same time, some downstream memory manufacturers also suffer from the cost pressure which leads to their order loss, Dongguan Daily reported Tuesday (Mar.29).
Many businessmen from Tian Yuan Computer Plaza in Nancheng District are making complaints these days. According to one of them surnamed Zheng, the prices of memory cards for cellphones, USB flash disks and memory cards for digital cameras all see a big rise, 5 to 10 yuan on average.
Before the price hike, Zheng sells 5 to 10 USB disks a day on average. After the quake, sometimes nobody buy them even for several days. There is a big demand for USB flash disks. They used to sell very well. But now only a few people buy them.
The prices of almost all the USB flash disks have jumped sharply, according to Southern Metropolis Daily. The price of 4G USB disks in current market is generally raised by 20 to 30 yuan while 8G USB disks raised by 40 yuan. For example, Kingston 4G USB disks which sells 45 yuan half a month ago now sells 85 yuan and its 8G USB disks which used to sell 75 yuan now sell 135 yuan.
However, insiders said the goods are abundant in sales, but the sellers want to earn more money with the earthquake as excuse. Though some chips in USB disks are from Japan, Taiwan and South Korea also have abundant chips to supply. Therefore, there is no vast change in the relation between supply and demand. An anonymous electronics businessman holds that the actual cause of the prices hike is the rise in raw material costs and labor costs.
Affected by the earthquake and subsequent paralyzing of transport, prices of Japanese-branded cameras also have been raised on an average of 1,000 yuan (152 USD). The prices of Canon's Middle and low level digital cameras are raised by 200 to 300 yuan while higher-end professional ones rose by several thousand yuan.
"The impact of Japan earthquake on Dongguan enterprises has begun to emerge," said Yin Jianwen, secretary-general of Dongguan's Electronic Industrial Association. The stocks in most enterprises will last about one month. Half a month after the earthquake, many enterprises are beginning to feel the supply pressure.
The disruption of chip's supply has led to the price hike of chips. Some downstream memory manufacturers also suffer from the cost pressure. "Due to the sudden rise of chip price, two memory enterprises in Chang'an and Nancheng are over 100,000 yuan to the bad in the order signed before", Yin introduced.
Yin estimates that the pressure of chip price rise will continue to influence panel industry. "It may be a prelude to a grand influence which is expected to emerge in May."
(By Tan Jing)
