Companies with the highest consumer electronics exposure, including Flextronics International Ltd, Molex Inc and Nam Tai Electronics Inc, are most at risk.
“We expect the impact to be both direct and indirect, providing some companies with a convenient excuse for disappointing first quarter results or second quarter outlooks,” analyst Brian White wrote in a note dated March 14.
Though Apple Inc’s supply could be constrained, White expects Hon Hai Precision Ind Co Ltd to make every effort to procure components for its most important customer.
“We expect some disruption in the LCD supply chain, including impact from passive components and chips used in the final assembly process across LCD TVs, notebooks, desktop PCs and hand-held devices,” White said.
Japan’s Asahi Glass Co said damage to its facilities had been limited to small and mid-sized LCD glass substrates and overall impact to its flat panel glass business would be limited, White noted.
Corning Inc has also said that no damage to supply occurred at its Shizuoka or Sakai City LCD glass plants.
Nippon Electric Glass is yet to make an announcement regarding its LCD glass facilities, the analyst noted.
