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It can take up to one month to clean up the aftermath of a Renesas fire
22.03.2021 [07:50],
Alexey Razin

Friday’s fire at Renesas in Ibaraki Prefecture was the second disaster affecting its operations this quarter — in February, chip production had to be suspended due to an earthquake. The fire put out of action one of the clean rooms at the enterprise, it can take up to one month to eliminate its consequences, and the lost revenue will reach $ 156 million.

Image source: Renesas / Kyodo

Representatives of the company at a press conference apologized to customers for possible restrictions on the supply of products caused by the consequences of the fire. The affected Renesas facility is cutting-edge, with many of the company’s partners have already offered their assistance in dealing with the consequences of the fire, including production equipment, which is now also in short supply. It can take up to one month to restore an enterprise. The fire affected only 5% of the clean room on the first floor of the enterprise, a similar room on the second floor was not affected, but it will be able to function only after the clean room on the first floor is restored.

Renesas now has about a month’s stock of finished products. Distributors have roughly two to three times that stock, but demand for automotive components is high and warehouses can empty out very quickly. Renesas will try to transfer part of production to other enterprises, but this will not help fully compensate for the damage from the fire. Automakers around the world are forced to shut down their conveyors due to a shortage of electronic components, and Renesas is the third largest manufacturer. In February, the company’s competitors were hit by bad weather in Texas, so the overall industry situation for Renesas continues to worsen.

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