Major auto semiconductor supplier Renesas Electronics Corp. said Tuesday a full recovery in output at a fire-damaged plant in Japan will be delayed to mid-June from May as it needs time to get manufacturing equipment replaced and operational.
Output capacity recovered to about 88 percent of pre-fire levels at the end of May at a plant in Ibaraki Prefecture near Tokyo, following a fire on March 19 that came amid a global shortage of chips caused by the coronavirus pandemic.
The delay is not expected to affect the time frame for shipments to fully recover in early July, Renesas said.
The pandemic has boosted demand for semiconductors, used in everything from laptops and game consoles to cars. The chip crunch has forced automakers at home and abroad to curb production. Among Japanese automakers, Nissan Motor Co. expects a production cut of around 250,000 vehicles in the current business year through next March.
Renesas resumed output at the plant on April 17 following the March fire.
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