Renesas Chip-Plant Fire Spreads Concerns About Global Auto Production
In Tokyo, a fire at a factory of one of the world’s leading auto chip makers has threatened the shares of Toyota, Nissan and Honda. The auto industry is already facing production issues with due to a semiconductor shortage. The factory is located in Hitachinaka and will take at least a month to resume operations.
The factory is a subsidiary of Renesas Electronics Corporation and its shares were down 4.9% on Monday. Toyota, Nissan and Honda Motor Corps all fell by more than 3%. A power surge cause the fire, damaging rooms needed to make semiconductors and two thirds of the lines damaged were used to make automotive chips. Renesas’s chief executive said Sunday the impact on global auto chip supplies would be significant.