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Effect of the Renesas Fire Worse than Originally Reported
Renesas Electronics Corporation held a second press conference regarding the occurrence of a fire on March 19, 2021 at part of the processes in the N3 Building (300mm line) of Naka Factory (located in Hitachinaka, Ibaraki Prefecture). The company initially reported 11 machines were damaged in the March 19th fire, but, following a detailed investigation, the Nikkei reported that the number of inoperable machines was now believed to be around 17. Within the total of 23 machine units, 11 units are to be procured within April, while some equipment may not be procured until after June. A Renesas spokesperson said they are in discussions with equipment manufacturers to procure the equipment at an earlier date where possible.
The company expects complete recovery of the clean room of the N3 Building by around mid-April and production to resume in one month as initially announced.
Including the impact of the fire and the finished product inventory worth approximately 2 billion yen. If the N3 production capability took 1.5 months to recover to 100%, the financial impact is expected to be approximately 17.5 billion yen. If it takes 2 months to recover, the financial impact is expected to be approximately 24.0 billion yen. The company accounts for 30% of the global market for microcontroller units used in cars, and two-thirds of the chips produced at the facility are for the auto industry. An extended outage in production could add to the global shortage of chips, which is already disrupting the auto and electronic device sectors.
Source; Semiconductor Digest
Renesas Electronics Corporation held a second press conference regarding the occurrence of a fire on March 19, 2021 at part of the processes in the N3 Building (300mm line) of Naka Factory (located in Hitachinaka, Ibaraki Prefecture). The company initially reported 11 machines were damaged in the March 19th fire, but, following a detailed investigation, the Nikkei reported that the number of inoperable machines was now believed to be around 17. Within the total of 23 machine units, 11 units are to be procured within April, while some equipment may not be procured until after June. A Renesas spokesperson said they are in discussions with equipment manufacturers to procure the equipment at an earlier date where possible.
The company expects complete recovery of the clean room of the N3 Building by around mid-April and production to resume in one month as initially announced.
Including the impact of the fire and the finished product inventory worth approximately 2 billion yen. If the N3 production capability took 1.5 months to recover to 100%, the financial impact is expected to be approximately 17.5 billion yen. If it takes 2 months to recover, the financial impact is expected to be approximately 24.0 billion yen. The company accounts for 30% of the global market for microcontroller units used in cars, and two-thirds of the chips produced at the facility are for the auto industry. An extended outage in production could add to the global shortage of chips, which is already disrupting the auto and electronic device sectors.
Source; Semiconductor Digest
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