Good grief!
Fire halts production for auto chip giant Renesas amid global shortage
Fire halts production for auto chip giant Renesas amid global shortage
- Renesas (OTCPK:RNECF), one of the largest auto chip companies in the world, announces that a fire has impacted production at its Naka Factory located in Hitachinaka, Ibaraki Prefecture.
- The fire occurred in one of the clean rooms at the N3 building, which houses the 300mm production line.
- Renesas confirms some damages to utility equipment and says the impacts to equipment, work-in-process, and the financial impacts are currently undetermined and under investigation.
- Production at the facility's N2 building (200mm line) and WT building (wafer testing) will continue with normal operations.
- Renesas holds a 51% share of the global automotive semiconductor market, which is currently experiencing a massive shortage that can allow the chipmakers to increase pricing.
- Auto chip peers on the move: NXP Semiconductors (NXPI +2.6%), ON Semi (ON +2.2%), and STMicroelectronics (STM +4.4%).
- Related: Yesterday, automaker Ford cancelled more shifts due to the ongoing chip shortage.