Japan’s Renesas Electronics, a global leader in semiconductor manufacturing, plans to resume production at major factories damaged in the May fire, the company’s head Hidetoshi Shibata said at a press conference today.
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He said: “The productivity of our Ibaraki factory in May should reach 100%. In April, we will purchase the necessary equipment to replace the equipment damaged by the fire.”
Due to the establishment of fifth-generation mobile networks in many countries, Japanese automakers faced a semiconductor shortage at the beginning of this year, which is related to the sharp increase in demand for these products. In addition, the production of personal computers and game consoles has increased due to epidemics and the surge in remote office and off-site work, which also requires additional semiconductors.
This situation was exacerbated by a fire at the Renesas Electronics factory in March, which accounts for 17% of the global chip market.
Analysts at Nomura Securities believe that, as a result, global car production may fall by about 7% in the third quarter, or 1.6 million units, while Japanese company car production will drop by 1.2 million units.