Component shortage that created by Japan's earthquake on March 11 has reportedly caused some upstream players supplying their clients second-rate components to satisfy their demand, according to sources from component makers. In response to the situation, the sources pointed out that they will take advance measures to prevent second-rated components to enter their supply lines.

The sources pointed out that the downstream component players were concerned about the upstream component shortage and therefore has been stocking their inventory via the spot market using cash and in order to secure more supplying sources, these downstream component makers may have contacted suppliers that they rarely would cooperate with and the chance of being cheated by the supplier - with relation to the quality of their products - arising.

However, the sources pointed out that the supply of the second-rates components are mostly occurring for products such as capacitors or chemical raw materials and rarely happened in components such as hinges, chassis or cooling module. Sources from power supply unit makers also pointed out that have been hearing rumors about their fellow makers are seeing an increasing ratio of defective power supply components.

To prevent vendors from adopting second-rated components, the sources pointed out that they will choose their long-term partner as their priority if necessary they will adopt components from others, but they will adopt after a careful evaluation.