DOW JONES NEWSWIRES The earthquake in Japan has resulted in the suspension of about one-fourth of worldwide production of silicon wafers used to make semiconductors, according to an industry researcher. IHS iSuppli said that after the quake, manufacturing operations have stopped at Shin-Etsu Chemical Co.'s (SHECY, 4063.TO) Shirakawa facility and MEMC Electronic Materials Inc.'s (WFR) Utsunomiya plant. Those two plants combine for 25% of the global supply of wafers used to make chips. "The suspension of operations at these plants could have wide-ranging implications beyond the Japanese electronics industry," IHS said. "A 25% reduction in supply could have a major effect on worldwide semiconductor production." Last week, MEMC said it had evacuated the plant and that operations there remained suspended pending the conclusion of safety inspections and damage analysis. Shin-Etsu also last week said operations were being halted at the Shirakawa plant. Wafers are thin slices of silicon that are the substrate of semiconductor devices. -By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com
