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Automotive electronics maker Renesas is hit harder than anticipated in recent fire
Japanese company Renesas Electronics suffered a fire this month at one of its facilities in Ibaraki Prefecture. According to the first forecasts, the restoration of the enterprise’s activity would have lasted for one month. The initial damage assessment mentioned 11 failed pieces of equipment, now it became clear that there were 17 of them in total.
Image source: Renesas
Some of the equipment, according to the Nikkei Asian Review, was not damaged by fire, but by soot resulting from burning, so closer inspection revealed additional damage. Renesas hopes to replace the failed equipment with the help of partners and the government, since it is not so easy to acquire it in conditions of shortage. Part of the equipment will be replaced with used equipment. Renesas will provide a full report on the extent of the damage in the coming days.
Renesas controls approximately 20% of the automotive electronic components market. In conditions when the market suffers from a shortage of products, additional force majeure circumstances do not add optimism. Renesas still manufactures up to 70% of its products in-house, relying on TSMC only to manufacture the most advanced components. When the Japanese industry was hit by the earthquake in 2021, Renesas had to recover production for three months.