File Picture: AP Photo/Darko Vojinovic
File Picture: AP Photo/Darko Vojinovic

No respite for chip-challenged auto sector as supplier recovers from fire

By Reuters Time of article published Jun 2, 2021

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TOKYO - Renesas Electronics Corp this morning said restoring full production capacity at a fire-damaged chip plant in Japan would take longer than expected, predicting a return to normal by mid-June rather than the previously estimated end of May.

Capacity on the Naka plant's 300mm chip line in eastern Japan had returned to about 88 percent of pre-fire levels at the end of May, the company said in a statement. All new equipment would be installed and switched on "by mid-June", it added.

The fire, caused by an electrical fault, was a blow to carmakers around the world already struggling to find enough automotive semiconductors. Renesas makes nearly a third of the micro-controller chips used in cars around the world.

An area of 600 square metres was burned in the fire, with 23 machines destroyed and the ultra-sensitive clean room needed for chip manufacturing filled with smoke and soot. The Japanese government called on equipment makers to help Renesas, while customers, including Toyota Motor Corporation sent officials to help the chipmaker restart the line.

IOL MOTORING and REUTERS

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