Abstract
Analysis of the economic implications of the Japanese earthquake has focused on supply side economics and with good reason. There are plenty of concerns about shortages of electronic components and raw materials used by high-tech industries. Automotive OEMs worldwide are closing because they cannot source chips used to monitor airflow and drive In-car Infotainment systems. Japan's Importance in producing waters for semiconductor manufacturing the shuttered Shin-Etsu plant in Nishigo Village, northern Japan, normally supplies 20 per cent of the entire industry's requirements and materials for printed circuit boards may affect all products that integrate electronics. However, as time passes, attention is also encompassing demand. Shortly after disaster struck, Apple put the Japanese launch of the IPad 2 on indefinite hold. Coupling this to concerns about securing parts for the tablet, financial markets disregarded Its glowing reviews and marked down Apple's shares by more than 5 per cent.
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