Low inventory in the channel — Our channel checks suggest that MGC has stopped taking new orders and has not given any specific date for resumption in production. According to our supply-chain checks, second-largest BT supplier Hitachi’s factories and facilities are not damaged significantly. Hitachi is said to be in a position to take orders but can’t arrange immediate shipments. Our checks with our Japan analysts indicate that MGC’s plants and machines were damaged by the quake, and it may take months for production to resume. Although Hitachi’s plant is less damaged, nuclear fears and the disruption of logistics may prolong the production and delivery of BT materials. Korea Memory Beat: Potential Supply Bottlenecks from the Earthquake The current inventory stock of BT in the Taiwan supply chain ranges from two to four weeks, in our view. Asia Macro Flash: Regional Macro Impact from Japan Earthquake
