The March 11 earthquake impacted Northeast Japan, which is also the main region of the country's semiconductor supply chain. With Japan-based wafer foundry Shin-Etsu Chemical stopping production, Taiwan semiconductor companies such as Sino American Silicon Products (SAS), Wafer Works, San Chih Semiconductor have been contacted by overseas clients to increase orders to make up for possible decreased supply from Japan.
SAS indicated that it is still difficult to gauge the full impact of the earthquake. Though demand outside of Japan could increase, orders from Japanese clients could also decline, the company said, noting that electricity generation is the most critical at the moment and could have huge implication on global semiconductor wafer supply. SAS mainly manufactures 3- to 8-inch wafers. With US-based semiconductor companies transitioning to 12-inch process, orders visibility for small-to-medium size wafers is good at the moment.
San Chih confirmed that it has received inquiries from clients in regards to wafer supply. The company said that it is at 90% capacity and produces 450,000-500,000 units a month currently. To satisfy demand, it will have to ramp up output to around 600,000 units monthly or even higher in the near term.
San Chih is not certain that it will be able to fulfill all orders and inventory is low at the moment. The company produces 3-, 4- and 5-inch wafers.
Wafer Works is indeed seeing an increase in orders due to the earthquake. Its small-to-medium size capacity is already running at full capacity and inventory is low as well. Wafer Works noted that it is unable to build up inventory since they are shipping the wafers to clients right off the production lines.