Japanese automotive chip maker resumes production line

Japanese semiconductor chip maker Renesas Electronics has restarted a fire-hit production line at its plant in Ibaraki prefecture's Hitachinaka, and aims to resume full output by the end of next month.

Renesas resumed the operation of the plant's advanced 300mm wafer line on 17 April. The line closed last month from fire damage. The company had said then it was trying to resume the line within a month with assistance from partner companies, as well as equipment manufacturers, material suppliers and construction companies.

The line resumption is expected to ease pressure on Japan's auto industry as two thirds of the 300mm wafer line is designated for automotive use. Renesas is ramping up output at the production line before hitting half of the capacity by the end of this month.

A shortage of automotive chips continues to weigh on car manufacturers globally. Some Japanese carmakers have also curbed domestic car production in the last few months. Japan's car output fell by 9pc on the year to around 659,000 in February.

The Japanese government had requested Taiwan's chip makers supplement production during the chip line closure at Renesas, in addition to earlier requests made to other Japanese makers. Premier Yoshihide Suga had agreed with US President Joe Biden that the two countries would co-operate on sensitive supply chains, including semi-conductors, as part of bilateral talks held on 16 April in Washington.