Toyota, Nissan, and Honda are among several car manufacturers currently working to assess the impact on their production of a fire at Renesas Electronics production facility that could exacerbate the global semiconductor shortage.

According to news outlet Reuters, a fire over the weekend has affected most of the production at the Renesas production facility. Renesas supplies an estimated 30 per cent of all semiconductor chips globally, with experts predicting further disruptions to new-car production.

“It could take three months or even half a year for a full recovery,” Akira Minamikawa, an analyst at London technology research company Omdia told Reuters.

“This has happened when chip stockpiles are low, so the impact is going to be significant.”

Semiconductors such as those made by Renesas are used extensively in cars, including to monitor engine performance, manage steering or automatic windows, and in sensors used in parking and entertainment systems.

“We are gathering information and trying to see if this will affect us or not,” reported a spokesperson for Honda.

Nissan and Honda have reportedly already been forced to scale back production plans due to the global semiconductor shortage. Toyota, which has agreements with some parts suppliers to stockpile chips, has performed well so far.

The Japanese Government has promised to offer support for the automotive industry.

“We will firmly try to help the [Renesas] factory achieve swift restoration by helping it quickly acquire alternative manufacturing equipment,” said Chief Cabinet Secretary, Katsunobu Kato.

The fire follows shortly after a forced three-day closure of the Renesas production facility after an earthquake last month.

Sources:

Car Advice | Car makers further impacted by semiconductor plant fire – report

Reuters | Japanese carmakers assess impact of fire at Renesas chip plant

26 March 2021