Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Japan’s Renesas Electronics has halted automobile semiconductor chip production at one of its lines inside its Naka factory, following a fire last week. The company has reported a financial impact of JPY17bn ($153mn). 


Renesas manufactures around 30pc of the chips supplied globally according to media reports, and the fire destroyed 11 machines, which is equivalent to 11pc of the Naka factory’s output. The company said in a statement on Monday that the affected line will be operational in about a month. Meanwhile, Renesas may have to rely on its other plants to make up for the production loss.


Japan had recently reached out to Taiwan to help alleviate its nationwide shortage of semiconductor chips. The news about Renesas is therefore another blow to an already struggling industry with Japanese automakers assessing whether the stoppage will affect their production.  


The Japanese government has also confirmed its support for the automobile industry. Katsunobu Kato, chief cabinet secretary, noted in a separate statement on Mar 22 that Renesas will get all the help to acquire alternative equipment to resume production soon.


($1 = JPY108.67)

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