Qualcomm (QCOM), Intel (INTC), Say Japan Won’t Slow Chip Production

Citing multiple sources of product, Qualcomm (NASDAQ:QCOM) and Intel (NASDAQ:INTC) both say production won't be hindered at either of the companies because of the earthquake in Japan.

“We will keep our commitment to our customers,” said Chuck Mulloy, a spokesman for Intel. “Our general rule is that nothing is sole-sourced.”

The 9.0-magnitude earthquake and resulting tsunami damaged factories and transportation, and power is still out at Japanese producers of some key components and materials used in the electronics industry. Analysts at Barclays Plc (NYSE:BCS) and UBS AG (NYSE:UBS) had speculated that shutdowns at Mitsubishi Gas Co. would deprive some chipmakers of a chemical resin used to package their products, causing supply disruptions.

“Qualcomm has multiple, geographically diverse sources for supply as well as production processes specifically designed to enable us to mitigate disruptions in our supply chain,” the company said today in a statement. “We do not foresee any significant impact in our ability to supply product to our customers due to the events in Japan.”

Qualcomm closed Wednesday at $50.50, down $2.50, or 4.72 percent. Intel closed at $19.81, falling $0.37, or 1.85 percent.




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