Renesas fire may worsen global chip shortage
Mar.22,2021

As global chip capacity is tight, Japan’s Renesas suffered a fire, potentially worsening the global chip shortage.

Renesas Electronics Corp., the world’s third largest automotive chip supplier, one of its 12-inch chip factories in Japan was fired last Friday. Although the fire was quickly extinguished, Renesas has decided to shut down the 12-inch line temporarily.

Renesas’s CEO Hidetoshi Shibata said Friday’s fire damaged chip production facilities, which may have a significant impact on the automotive chip industry. Mr. Shibata claimed that the company plans to resume production at the affected plant within a month, and a one-month shutdown could bring 17 billion yen ($156 million) in lost revenue. Chips are also being considered to produce at alternative plants.

Renesas is listed as one of Apple’s suppliers in the list of major suppliers, and the plant is identified as one of its production sites for producing components for Apple products. As the plant primarily serves automotive customers, Apple’s products are unlikely to be directly affected by the fire at the Renesas chip plant.

However, the shutdown of Renesas’s plant means to increase pressure on other facilities and chip makers, and bring a collateral damage to Apple, as any components sourced from the plant will have to be manufactured elsewhere in the near future.

As for Renesas’s fire, Toyota Motor told that it is assessing the impact of the shutdown of the Renesas plant. Japan’s Chief Cabinet Secretary Katsunobu Kato said the government will support early recovery construction after the fire at semiconductor supplier Renesas.

You must be login to post a comment.