Japan-based Nippon Chem-Con, a main supplier of solid aluminum electrolytic capacitors for Taiwan-based motherboard makers, has temporarily stopped production due to the earthquake hitting northeastern Japan, but the makers will not be negatively influenced because they have 1- to 2-month inventories, plus one or more alternative supply sources in Japan, according to sources from motherboard players.

The sources pointed out that Japan-based players currently still hold control of several key IT component supplies with most of the players' R&D centers and high-end production lines still located in Japan. Since the players' overseas production bases are mostly used for manufacturing mid-range and entry-level products, the earthquake is expected to have a strong impact on the IT industry worldwide.

With PC demand in Japan to drop significantly, consumer products such as notebooks will be the first to feel the impact; meanwhile, since DIY PCs are not popular among consumers in Japan, Taiwan-based motherboard makers, and Intel, AMD and Nvidia are unlikely to see significant damage, the sources added.