Japan’s chip plant goes up a month after a fire, Renesas says

TOKYO – Japan’s Renesas Electronics has said a fire that disrupted one of its major chip factories will have a major impact on supply, adding to the shortage facing the global automotive industry .

Hidetoshi Shibata, CEO, said at a media conference on Sunday that Renesas will resume production “within a month” at the plant. However, he acknowledged that the impact will be “significant” for the supply of chips.

“I apologize for any inconvenience and inconvenience caused by this incident,” said Hidetoshi Shibata. “We will do our best to minimize the impact, including looking at alternative production.”

But Shibata said, “It is difficult to say whether it is possible to produce at other factories.”

The automotive industry is already facing a global shortage of semiconductors, with chip makers struggling to respond to post-pandemic rise in demand while accepting orders for chips for smartphones and other consumer electronics.

Renesas stopped production at the Hitachinaka plant, northeast of Tokyo, after a fire broke out Friday and took more than five hours to control it.

About two-thirds of the chips have been extracted at the plant for the automotive industry, according to the company.

The fire did not injure any workers but damaged a production line that mainly makes microcontrollers for vehicles. Renesas controls 20% of the global share in microcontrollers.

Renesas Naka plants in Hitachinaka, northeast of Tokyo. (Photo by Daisuke Maruyama)

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