Automotive companies are scrambling to assess the consequences of a fire at a Renesas semiconductor manufacturing facility in Japan.

Renesas Electronics has said a fire occured on March 19 at part of the processes in the N3 Building (300mm line) of Naka Factory (located in Hitachinaka, Ibaraki Prefecture) of Renesas Semiconductor Manufacturing Co., Ltd, a wholly-owned manufacturing subsidiary of Renesas.

Renesas said in a statement that although approximately two-thirds of the products manufactured within N3 Building can be alternatively produced in-house or in foundries, due to the recent increase in demand for semiconductors, the “situation does not allow for all products to be immediately produced alternatively”. The semiconductors manufactured at the plant are used extensively in automotive applications such as engine management and in managing sensors for advanced driver assistance systems (ADAS).

The company also said the financial impact from halting the N3 Building production is approximately 17 billion yen per month.

Reuters reported that the global semiconductor shortage could be aggravated further by the Renesas fire. Toyota, Nissan and Honda manufacturing in Japan could be vulnerable over the next few months, reports suggest - though the impact will be potentially felt via the interrupted supply of major component systems.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.