Delays in vehicle deliveries will worsen further due to a fire at a computer chip factory in Japan, a sector that has already been in crisis for nearly a year.
It’s a new blow for thesemiconductor industry, which has an even greater impact on automotive suppliers. A fire partially destroyed a factory that produces these computer chips in Japan. While we were talking about it at the end of last week already, this is news this weekend that further complicates the situation, while the industry is already suffering from a shortage of these components.
A fire at a key factory in Japan
Japanese Renesas Electronics, a key supplier of automotive semiconductors, said yesterday that a fire partially damaged chip production at its factory.
The latter indicate that production would focus on minimum 1 month to restart, which could aggravate further again the supply problems which are currently disrupting automobile production. The Japanese Renesas is indeed the world’s second largest producer of automotive chips.
The impacted production are chips intended for the automotive sector
The fate seems to be hitting the automotive sector, already in suspense with a supply drop by drop at the global level, which manifests itself in significant delivery delays, and assembly lines sometimes completely at a standstill.
In the Japanese factory, approximately two thirds of production of the line affected by the fire this weekend are chips for the automotive industry, said CEO of Renesas Electronics, Hidetoshi Shibata. The latter added that unfortunately, this damage occurs when we can not count on no excess production capacity at present.
Renesas may not be able to replace all destroyed equipment within a month, suggesting that a return to normal production may take longer.
As a reminder, this global shortage of chips comes largely from consumer electronics boom following the Covid-19 pandemic. It does not only impact automotive suppliers: all sectors such as mobile telephony, consumer computing or even video game consoles are also affected by these production delays.
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