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Singaporean Passive Device Retailers Scramble for Supply from Taiwan After Quake in Japan

2011/03/24 | By Ken Liu

Taipei, March 24, 2011 (CENS)--Anticipating that supply shortage will soon hit the market for passive devices in the aftermath of the March 11 devastating earthquake in Japan, Singaporean retailers are reportedly scrambling for the devices from Taiwan's suppliers.

Japanese manufacturers running production facilities in the hardest-hit part of the 9.0-magnitude earthquake and ensuing tsunami include Murata Manufacturing Co., Ltd., a world leading maker of multi-layer ceramic capacitors (MLCCs); TDK Corp., which makes MLCC and inductors; and Kawakita Denki Kigyosha (KDK), which makes aluminum foils.

Although these factories are working to resume production, their outputs are expected to remain limited in the initial stage. Some makers said their supplies would not be a problem in short term as they still keep sufficient inventory backlogs.

Their hamstrung production has inspired Singaporean retailers to place rush orders with Taiwan's suppliers. According to Taiwan's industry watchers, supply shortage will become more apparent in the second quarter, giving Singaporean retailers the reason to compete to build up inventories.