* Has around 45 days of wafer inventory -CEO
* Extended Japan crisis may affect customers
* Memory market bottomed out, will gradually recover
ICHEON, South Korea, March 30 Hynix
Semiconductor Inc , the world's No.2 memory chip
maker, expected on Wednesday little immediate impact on chip
wafer supplies from Japan's devastating earthquake but warned
that an extended crisis may hit its core customers.
"We have ample supply of wafer inventory and there won't be
any immediate impact (from the quake) as non-Japanese suppliers
have enough extra capacity for more production," Hynix CEO O.C.
Kwon told reporters.
"Should the crisis continue to more than one or two months,
however, it could affect inventories of our customers such as
computers, tablets and smartphone makers, because they also
depend heavily on Japan for parts supplies."
The earthquake and tsunami that hit Japan March 11 crippled
wafer production from major Japanese firms such as Shin-Etsu
Chemical , the world's largest maker of the chip
Kwon said Hynix had around 45 days of wafer inventory and
was reassured by quake-hit Japanese raw materials firms that
there wouldn't be any major disruptions in wafer supplies.
Analysts say that Shin-Etsu and Sumco account for
more than 60 percent of Hynix's wafer needs, with LG Siltron and
Germany's Siltronic rounding out the list of suppliers.
Disruptions to production and delivery of components
continue to weigh on the global tech sector more than two weeks
after the quake.
Finland-based Elcoteq , which assembles cellphones
and set-top boxes for many global brands, warned on Tuesday it
faced volume and profitability risks in the short and medium
term because of the disaster in Japan. [ID:nLDE72S21S]
Japan accounted for 14 percent of global production of
computers, consumer electronics and communications gear last
year, according to IHS iSuppli.
Kwon also warned that an extended disruption could deplete
inventories of key components at its customer companies.
He said the memory chip market had bottomed out and would
show a gradual recovery from the second quarter.
"The memory chip market has been under a severe correctional
phase since the second half of last year but the balance of
supply and demand will gradually improve from the second
quarter," Kwon told shareholders.
Kwon said that the global economy would also gradually
improve but that uncertainties from the Japan's earthquake, the
political turmoil in the Middle East and European debt problems
may deter the recovery.
Shares in Hynix, which competes with sector leader Samsung
Electronics and Japan's Toshiba Corp and
Elpida Memory , rose 2.6 percent by 0230 GMT, beating a
0.7 percent rise in the broader market .
(Reporting by Miyoung Kim; Editing by Jonathan Hopfner)