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Fire damage at Renesas chip factory was worse than anticipated; automatic supply of chips may be damaged

Earlier this year, Renesas Electronics Corp's chip manufacturing plant in Naka, Japan suffered a fire. The company said 11 vehicles were damaged, but a company spokesman now says it believes the damage was more extensive than thought.

Renesas

Although a spokeswoman for Renesas did not confirm the exact figure, she added that the chip maker will share information on the amount of damage by Tuesday. According to the latest reports, it is estimated that the number of vehicles that have failed is now around 17.

The company says it will take at least a month to resume production on the 300mm plate line at the fire-affected plant, but it could take months to replace damaged machines. Prolonged power outages could exacerbate a global chip shortage, disrupting the production of cars and electronic devices.

Renesas accounts for about 30 percent of the global market for microcontrollers used in automobiles, and two-thirds of the chips it produces are for the automotive industry.

The fire was reportedly caused by a power surge in one of the cars. This comes after an earthquake halted production for three days last month. In 2011, the plant came to a standstill for three months after a deadly earthquake that devastated Japan's northeastern coast.


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