Japan-based suppliers of key materials used to make handset components, including BT resin, rolled copper foil and ACF (anisotropic conductive film) have temporarily stopped taking orders and shipments due to the impact of the recent earthquake, according to component makers.
Some suppliers are inspecting equipment and may resume operations in one to two weeks, others located in northeastern Japan may need longer, the sources indicated.
If a supply shortage surfaces, production, shipments and planned smartphone launches will be delayed, the sources said. The potential risk may result in competition for materials and price hikes, although the first quarter is typically the handset market's off-season, the sources analyzed.