Japan's Economic Aftershocks May Affect Silicon Valley Firms

(KCBS)- Last week's deadly earthquake and tsunami in Japan has rocked stock markets around the world, forcing some Japanese companies to suspend their business.

KCBS' Technology Analyst Larry Magid said with our economies so closely linked that there may be some shortages in the microchip market in the U.S., but start-ups are more likely to be affected than larger companies who are usually well stocked.

KCBS Technology Analyst Larry Magid:

Magid said camera companies and companies such as Apple buy their chips in the half billions of dollars, but that the smaller companies that don't have the credit to get supplies may have to slow their imports.

Japan is also challenged by nuclear power plants that are offline, but other power supplies are available according to Magid.

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