Image source: Renesas Electronics
Renesas Electronics Corporation (OTC: RNECY), a key automotive semiconductor supplier, said Tuesday that its plant in northeastern Japan damaged by a March 19 fire will now be back online by mid-June rather than its previous target for the end of May.
The Japanese chipmaker said it has procured “all necessary equipment to return to pre-fire production capacity,” which will be installed and operational by mid-June. Renesas anticipates production capacity of the company's 300 mm chip line at its factory in Naka will return to 100% of pre-fire levels "promptly thereafter."
Altogether, 23 machines were destroyed in the fire, which authorities said was caused by an electrical fault.
Following the blaze, production on the chip line resumed in mid-April and has recovered to 88% of pre-fire levels as of last month, the company.
The delay is not expected to impact the company’s goal of reaching its previous shipping volumes by early July, according to Renesas.
Since the fire, Renesas, which controls nearly one-third of the global automotive chip market, has shifted production to other factories and placed orders with overseas manufacturers to help make up for the shortfall.
The company supplies chips to Nissan, Honda and Toyota.
Renesas has also said it is working with auto manufacturers and their suppliers to minimize the impact to the industry, which has been facing a global chip shortage.
The shortage, which was caused in part by increased demand for consumer electronics amid the COVID-19 pandemic, was exacerbated by the Renesas plant fire, a historic spell of cold weather in Texas this past winter and a drought in Taiwan.
Source: Equities News