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Clients Switching to Taiwanese Hi-Tech Firms Following the Earthquake

2011/03/17 | By Philip Liu

Taipei, March 17, 2011 (CENS)--A number of domestic hi-tech firms have received rush orders in the wake of the massive Japanese strong earthquake, due to demand transferred from the clients of Japanese suppliers.

Fulltech Fiber Glass Corp., for instance, made an urgent air-cargo shipment for a rush order for fiber glass yarn yesterday (March 16), while Powercom has received orders for uninterruptible power supply (UPS) several times the normal level. Rush orders are also flowing to such sectors as passive components, semiconductor, silicon wafer, IC assembly, lithium battery for notebook PC.

Fulltech made the air shipment on the demand of clients, in reflection of the urgency state of the latter, following the serious damage on the factories of Nittobo, a leading fiber glass supplier, by the massive earthquake. Fulltech expect reception of more rush orders, as Nittoto appears unable to resume normal production in a short time.

Clients have also rushed to Powercom and Cyber Power for procurement of UPS, whose demand surged in Japan, overstraining the capacities of local suppliers. Powercom has decided to double its output, as many clients asked to buy up all the amount it can supply. Meanwhile, clients of Cyber Power have placed orders five to 10 times the normal level.

Among passive components, there has occurred large amount of rush orders for aluminum electrolytic capacitors, due to the uncertainty concerning the damage on the facilities of Murat and other Japanese major suppliers. Local suppliers noted that demand is strong and some even placed orders as long as three months.

Many clients have resorted to Formosa Sumco Technology Corp., for the supply of silicon wafers, as Shin-Etsu Chemical and Sumco, two leading silicon-wafer suppliers, have been unable to maintain normal shipment. Formosa Sumco has pledged to augment its output, without capitalizing on the disaster by raising prices at present.

Powertech Technology and Walton Advanced Engineering are rushing to boost their capacities by seeking advance delivery of equipment, in order to the meet the urgent demand for support of Elpida.

The strong earthquake has pried open Japanese NB PC lithium-battery market for Taiwanese suppliers, as Simplo Technology has received orders for NB PC battery modules from Japanese clients.