Renesas Electronics to move its production in northeastern Japan

Article by Christian A., on April 8, 2011

Renesas Electronics Corp. is planning to move the production of automotive microcontrollers in its non-operational Naka plant in northeastern Japan to its undamaged factory in Saijo, in western Japan, and to an affiliate-operated factory in Singapore.

The schedule of the transfer is yet to be announced by the company next week, an insider of the plan disclosed. Due to the earthquake that devastated Japan on March 11, 2011, and hurt the manufacturing industry, the Naka factory has been down and is expected to resume operations in July this year.

The shift in production will help lessen the worldwide shortage of the chips, considering that the company is the biggest maker of the microcontrollers around the globe and that the Naka plant is responsible for the 25 percent of the company’s microcontroller capacity.

However, the endeavor will only partially ease the global shortage, as it may take around four months before the Saijo and the Singapore plants can send finished products to its clients.

Specifically, the new sites can begin production two months after the shift from the Naka plant, and another two months for the manufacturing process. Renesas has around 41 percent of the market share worldwide, with 90 percent of its international capacity based in Japan. A typical modern vehicle will utilize from 30 to 100 microcontrollers.

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