Business

Renesas resumes production at fire-hit chip plant

Japanese news outlets say facility has partially begun operations, with plans to ship initial products in about a month

Updated 5 years ago · Published on 17 Apr 2021 8:00PM

Renesas resumes production at fire-hit chip plant
A blaze at a plant belonging to Renesas Electronics, a key supplier of automotive semiconductors, last month sparked concern about its impact on the world’s chip supply. – AFP pic, April 17, 2021

TOKYO – Japanese chip manufacturer Renesas Electronics today restarted production about a month after a factory fire that threatened to worsen a global chip shortage, said local media.

The blaze on March 19 at its facility near here occurred with carmakers already battling semiconductor supply problems, in part because of increased demand for chips from manufacturers of laptops, tablets and gaming devices.

Renesas, a key supplier of automotive semiconductors, saw 600 sq m of factory floor damaged in the fire.

The company on April 10 said it has completed repairs in the fire-hit clean rooms, and they came online for initial output.

Jiji Press and other news outlets said the firm partially began production this morning, with plans to ship initial products in about a month.

Immediate confirmation of the reports was not available.

Renesas has so far hoped to restart operations at the factory unit producing 300mm wafers – a key piece of tech for modern cars – in around a month.

But, the plant will not return to 100% capacity for “between 90 days (and) 120 days”, said CEO Hidetoshi Shibata late last month.

Company officials are tight-lipped about which of their customers will get early supplies, and said it will take more time to pinpoint the cause of the fire.

With the blaze sparking concern about its impact on the world’s chip supply, the Japanese government and some of Renesas’s own customers, including auto giant Toyota, have offered help.

During a summit yesterday in Washington, Prime Minister Yoshihide Suga and United States President Joe Biden agreed to “partner on sensitive supply chains, including on semiconductors, promoting and protecting the critical technologies that are essential to our security and prosperity”, said a joint statement. – AFP, April 17, 2021

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