Renesas plans chip output in Ehime after fire at main plant

08-Apr-2021 Intellasia | JapanTimes | 5:02 AM Print This Post

Major chipmaker Renesas Electronics Corp. is considering undertaking some semiconductor production at a plant in Ehime Prefecture following a fire in March at its main plant northeast of Tokyo, company sources said Tuesday.

Renesas plans to temporarily move output of chip products to its Saijo plant in a bid to recover production as early as possible amid a global semiconductor shortage that has hit the auto industry hard.

The company is also asking a Taiwanese semiconductor manufacturer to produce chips for it as part of efforts to meet demand, the sources said.

It said in late March that it expected to resume full-scale production at the main plant in Naka, Ibaraki Prefecture, in June at the earliest.

Renesas was the second-largest provider of microcontrollers chip products installed in vehicles to control power units and other devices in 2020 with a 17.0 percent global market share, after Dutch chip maker NXP Semiconductors NV at 17.1%, according to data provider Omdia.

Market analysts have expressed concern about the economic impact of the Renesas plant fire.

Analysts at Nomura Securities Co. said a lack of microcontrollers due to the fire could cut global auto production by around 7%, or 1.6 million units, in the three months through June.

Production by Japanese automakers is likely to decline by 1.2 million vehicles worldwide, possibly shrinking Japan’s real gross domestic product by 0.7 percent in the April-June period, they said.


Category: Japan

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