Telecom gear makers to feel Japan supply squeeze

STOCKHOLM, Mar 16 (Reuters): Top mobile telecom equipment makers Ericsson and Alcatel-Lucent are braced for a supply squeeze following Japan's earthquake, adding to fears for a sector hampered by shortages. Japan, a dominant chip industry player with around a fifth of the world's semiconductor production, has seen factories producing everything from chips to car parts closed following Friday's earthquake, threatening supplies to manufacturers across the globe. Many are making contingency plans and trying to source key components elsewhere, while working out how much inventory they have available to keep production going and for how long. "It is reasonable to expect that the events in Japan will affect supply of components but it is too early to say to what extent," Ericsson said Wednesday.