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Earthquake in Japan puts further dent on semiconductor shortage


Wednesday, February 17, 2021

Renesas Electronics is a key automotive semiconductor supplier.

On Saturday, an earthquake halted production at a Japanese chip plant when the facility lost power.

The company's only 300-mm fabrication line was shaken by a 7.3 magnitude quake.

According to Reuters, the company hopes to restart some production today.

However, it could be a week before full production resumes, which could disrupt an already troubled automotive chip supply chain.

This week, Ford Motor cut shifts at two U.S. manufacturing plants due to the global chip shortage.

The Semiconductor Industry Association has called for “bold action” to address challenges facing the semiconductor industry, including “substantial” financial incentives for manufacturing.

The good news is that Renesas has spent some $1.9 million outfitting factories with shock absorbing dampers to mitigate earthquake-induced stoppages.

By: DocMemory
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