Home Business Fire recovery at Renesas plant in Japan… Breathe in automotive semiconductors

Fire recovery at Renesas plant in Japan… Breathe in automotive semiconductors

by news dir

The logo of Renesas, a Japanese non-memory semiconductor company. [로이터=연합뉴스]

Renesas Technology, a Japanese semiconductor company, recovered a fire accident at its factory after three months. As Renesas, the top player in the automotive semiconductor field, fully recovers its production capacity, it is expected that the global automobile market will be refreshed even in the midst of a supply and demand shortage of semiconductors.

Return to normal shipments in July

According to foreign media such as the Yomiuri Shimbun on the 27th, Renesas has completed the fire damage restoration work at the Naka factory in Ibaraki Prefecture, which produces semiconductors for vehicles. At the Naka plant, a fire broke out in a building that mass-produced microcontroller units (MCUs) that control vehicle driving in March. At that time, about 600 square meters of space in the building was lost due to the fire, which directly and indirectly affected automobile companies around the world including Japan to cut production.

In the automotive semiconductor market, fewer than 10 companies worldwide, such as NXP in the Netherlands, Infineon in Germany, and Renesas in Japan, have an oligopoly. Although it has to undergo rigorous tests such as a minus 40 degree environment, the market supply price is usually less than 50,000 won, which is because profitability is low. As a major customer of Renesas, Japanese automakers are Toyota and Nissan, and auto parts makers are Denso.

Automotive semiconductor market share graphic image. [자료 옴니아]

Automotive semiconductor market share graphic image. [자료 옴니아]

A Renesas official said, “The period when shipments normalize is the third week of July.” In order to increase the supply of semiconductors used for auto parts, Renesas is also increasing the amount of consignment production (foundry) entrusted to Taiwanese semiconductor companies such as TSMC and UMC.

If Renesas recovers its semiconductor production prior to the fire accident, the semiconductor supply shortage experienced by the global automobile industry is expected to improve somewhat. An official from Kia explained at an IR for domestic institutional investors earlier this month, “Starting next month, the supply and demand situation for automotive semiconductors will be partially improved, and the number of parts disrupting supply will decrease.” Domestic automakers, including Hyundai Motor Company and Kia Motors, have imported Denso’s machines and parts equipped with Renesas’ semiconductors.

By Kim Young-min, staff reporter [email protected]

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