Renesas Says Damage From Fire At Chip Factory Worse Than First Thought

Renesas has stated it can take at the very least a month to renew manufacturing at its 300 mm wafer line on the fire-hit plant, however changing broken machines may take a number of months.


An extended outage could add to a global shortage of chips which is disrupting production of cars
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An prolonged outage may add to a world scarcity of chips which is disrupting manufacturing of vehicles

Renesas Electronics Corp now believes harm from a hearth at its chip-making plant in northeast Japan was extra intensive than first thought, an organization spokeswoman stated on Monday.

The firm had initially stated 11 machines have been broken in a hearth earlier this month on the Naka plant, however the Nikkei reported on Monday that the variety of inoperable machines was now believed to be round 17.

Also Read: Japan Car Makers Scramble To Assess Impact Of Renesas Auto Chip-Plant Fire

While the Renesas spokeswoman wouldn’t affirm a selected quantity, she added that the chipmaker would share the extent of the harm by Tuesday.

Renesas has stated it can take at the very least a month to renew manufacturing at its 300 mm wafer line on the fire-hit plant, however changing broken machines may take a number of months.

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Renesas accounts for 30% of the worldwide marketplace for microcontroller models utilized in vehicles

An prolonged outage may add to a world scarcity of chips which is disrupting some manufacturing of vehicles and digital units.

Renesas accounts for 30 per cent of the worldwide marketplace for microcontroller models utilized in vehicles, and two-thirds of the chips produced on the facility are for the auto business.

Shares of the corporate inched up 0.5 per cent on Monday, consistent with the broader Tokyo market. They, and shares of different massive Japanese automakers, had tumbled every week in the past after information of the hearth.

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The fireplace, attributable to an influence surge in one of many machines, comes after an earthquake stopped manufacturing there for 3 days final month. In 2011, the plant shut down for 3 months after the lethal earthquake that devastated Japan’s northeast coast.

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