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What: MEMC Electronic Materials
So what: MEMC makes the silicon wafers used in semiconductors. The process for turning those wafers into semiconductors is highly sensitive, so it is likely much (if not all) of the product being manufactured in Japan during the earthquake was destroyed.
Now what: The lost production will need to be replaced and could cause a supply shortage of semiconductors and wafers. MEMC should see a temporary bump in demand for the replacement product, and the low inventory situation could result in above-average prices. Because of the company's high operating leverage, this could be a big positive for near-term EPS.
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Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.