Renesas Electronic To Resume Partial Production

Renesas Electronic’s automotive chip plant in Kumamoto Prefecture is set to resume partial production tomorrow, the company has announced. Following last week’s earthquake in the region that claimed the lives of at least 48 people, Renesas and other leading electronic manufacturers in the region were forced to close their manufacturing processes. However, the company said yesterday (Wednesday 20th) that after completing an investigation of the site, some manufacturing processes will recommence. A press release, published last night, said: “Having completed a thorough assessment, Renesas has decided to resume production of some of the manufacturing processes starting April 22. “Renesas highly appreciates the kind understanding and support of the customers, partner companies and all those affected by this matter. “Assuming that there is no massive aftershock and significant change in the state of material procurement situations, Renesas, in accordance with the [Business Continuity Plan], aims to resume productions of other remaining processes step by step to reach full pre-earthquake production capacity at an earliest possible date.” There is no timetable for a return to full production, however, partly due to the company facing its own shortage of components. Lead times & supply chains still distrupted Kumamoto Prefecture, located in the centre of Japan’s Kyushu Island, is home to a multitude of semiconductor and electronic-related manufacturers. Aside from Renesas, other companies to have production facilities within the region include Sony, Tokyo Electron and Mitsubishi Electric. Reports in the Japanese and Asian press state that Tokyo Electron is set to bring production back to its plant in Koshi by the middle of next week at the latest, though it will not be running anywhere near maximum capacity for the time being. However, at the time of publication, neither Sony nor Mitsubishi had announced when their plants in Kumamoto would resume operation. Obviously, it is good news that production is gradually returning to the region, but many supply chains are likely to either experience a shortage in components or face a prolonged lead times for specific parts. Keep checking the Cyclops Blog to find the latest news regarding the Japanese electronics industry, including lead times and the resumption of manufacturing capabilities within the region.

For more information on Renesas Electronic To Resume Partial Production talk to Cyclops Electronics Limited