renesas electronics announced that its naka plant has recovered production levels prior to the fire.
🟩production level recovered to 100% in 97 days
On March 19, 2021, a fire broke out at Renesas Semiconductor Manufacturing’s Naka Plant, Building N3. On the night of June 24, a system was put in place to secure production before the fire, which means that production recovered 97 days after the fire broke out.
According to Renesas, the N3 building, which resumed production on April 17, had returned to production capacity of 88% of the pre-fire capacity as of the end of May. In other words, production resumed 29 days after the fire broke out, and production reached 88% in 73 days.
Production levels have recovered to 100%, but there is a process leading up to shipments, so shipments are expected to normalize in the third week of July.
🟩 the target for “pre-fire shipment level” is around 100 days.
renesas had set a target of returning to pre-fire shipment levels around 100 days after the fire broke out. if shipment levels return to 100% in the third week of july, it would be 115 days since the fire broke out. achieved more or less as planned.
🟩 alternative production is also going well
ABOUT TWO-THIRDS OF THE PRODUCTS PRODUCED IN THE N3 BUILDING WERE TECHNICALLY AVAILABLE FOR ALTERNATIVE PRODUCTION AT RENESAS AND OUTSIDE. THEREFORE, IT WAS PLANNED TO PROCEED WITH ALTERNATIVE PRODUCTION IN THE FORM OF UTILIZING ANOTHER FACTORY AND FOUNDRY, BUT IT IS SAID THAT ALTERNATIVE PRODUCTION HAS PROGRESSED SMOOTHLY.
🟩 impact on business results
RENESAS’ INITIAL ANNOUNCEMENT STATED THAT IT WOULD HAVE AN IMPACT ON SALES OF APPROXIMATELY 17.5 BILLION YEN IF IT TOOK 1.5 MONTHS FOR THE PRODUCTION CAPACITY OF THE N3 BUILDING TO RECOVER TO 100%, AND APPROXIMATELY 24 BILLION YEN IF IT TOOK TWO MONTHS.
according to the consolidated earnings forecast released on april 28, 2021, profit decreased by about 23.9 billion yen. it seems that the recovery of production was expected to be in two months, but it will take about three months for the actual recovery to recover.
🟩 conclusion
production recovers 97 days after renesas plant fire
renesas’ recovery from the fire was almost as planned. the fact that alternative production has been promoted will also serve as a response to the shortage of semiconductors.
the effects of the renesas fire attracted a lot of attention because they triggered a shortage of automotive semiconductors. therefore, renesas’ information disclosure was also timely and open. we can expect more from renesas in the future.
