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Fire Damage More Significant Than Expected At Japanese Car Chip Manufacturer

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The fire at Renesas has hit more machines than first thought. This means that chip production for the automotive sector could fall even further behind.

 

At Renesas, a chip manufacturer 100 kilometres from Tokyo, a fire broke out in building N3 on March 19. Initially, there were 11 affected machines, but now a representative of the company tells Nikkei that it concerns 17 machines.

Replacing the machines will take some time, but a bigger problem is that the air and water purification systems have also been affected. These systems are needed to get the machines that are still working again.

Renesas is one of the largest chip manufacturers in the automotive sector. It has been struggling with chip shortages for several months. This was made worse in recent weeks by blackouts in Texas (which forced NXP to cease production) and the fire at Renesas.

But also indirect incidents, such as the blocked Ever Given in the Suez Canal, do not make the situation any better.

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