Concerns Over Prolonged Car Semiconductor Supply Shortage Due to Renesas Fire... Japanese Government Steps In

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Japanese semiconductor company Renesas Technology, which is experiencing disruptions in semiconductor production due to a fire, initially expected it would take one month to resume factory operations, but it is now projected to take several months longer. Accordingly, the impact of the global semiconductor shortage is expected to persist for a considerable period.

According to the Nihon Keizai Shimbun on the 30th, the restart of Renesas's Naka factory in Hitachinaka City, Ibaraki Prefecture, which has halted production due to the fire, is expected to be delayed beyond the original estimate.

Earlier, Renesas reported that a fire broke out on the 19th, damaging the production line that mass-produces advanced semiconductor wafers. Among the 550 devices on this production line, 11 devices including plating equipment were confirmed to have been damaged.

However, subsequent investigations revealed that the extent of the damage was greater than initially assumed. The number of unusable devices due to the fire was found to be more than 20, significantly exceeding the initially identified 11.

As a result, not only Renesas but also the Japanese government are rushing to secure replacement equipment.

On the same day, Hiroshi Kajiyama, Minister of Economy, Trade and Industry, held a press conference after a cabinet meeting and stated, "Regarding the Renesas factory fire, we have requested some Taiwanese semiconductor companies for alternative production," and added, "The Ministry of Economy, Trade and Industry is in discussions with multiple equipment manufacturers to enable Renesas to quickly procure semiconductor manufacturing equipment."

Although the government has stepped up efforts to secure replacement equipment, a short-term resolution is expected to be difficult. The Nihon Keizai Shimbun reported that the plating equipment damaged in the Renesas factory fire is rarely available on the market, and even if the product specifications perfectly match existing products, it will take at least about one month to get them operational.

Major foreign media outlets have predicted that if the suspension of operations at the Renesas factory prolongs, the damage caused by the global semiconductor chip shortage will worsen.

Sankei Business reported, "Renesas's Naka factory, where the fire occurred, is a key plant for automotive semiconductors, and if part of the production stops, there are concerns about the impact on domestic automobile production."

Mitsubishi UFJ Morgan Stanley had forecasted that from January to June this year, the reduction in production in the Japanese automobile industry due to semiconductor shortages would reach 500,000 units. However, this number is expected to increase further due to the recent Renesas fire.

The fire at Renesas's Naka factory occurred around 3 a.m. on the 19th, damaging the production line that mass-produces single products. This factory mainly manufactures 'microcontroller (microcontroller unit, MCU)' semiconductors that control automobile driving.

This content was produced with the assistance of AI translation services.