Japanese earthquake helps component makers to raise prices

Taiwan-based upstream component makers have recently been seeing their clients aggressively checking their supply statues and damage from the Japan earthquake in order to secure supplies, and the clients are also turning moderate toward their insistence on component price cuts every quarter and are even willing to allow increases in the price, according to sources from the upstream supply chain.

Before the Japan earthquake clients were demanding component makers cut an average 5-10% off their product prices each quarter as the IT market had stronger supply than demand, while competition among upstream makers was fierce.