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A fire at a Japanese electronics company is expected to place further pressure on car makers globally.
Toyota, Nissan, and Honda are among a number of car makers currently working to assess the impact of a fire at a semiconductor factory in Japan.
The fire over the weekend has affected the majority of production at the Renesas Electronics production facility, according to news outlet Reuters.
Renesas supply an estimated 30 per cent of all automotive semiconductor chips globally, with analysts predicting disruptions to new-car production, exacerbated by major chip shortages already being felt across the globe due to the coronavirus pandemic.
“It could take three months or even half a year for a full recovery,” Akira Minamikawa, an analyst at London technology research company Omdia told Reuters.
“This has happened when chip stockpiles are low, so the impact is going to be significant.”
The Japanese Government has pledged to support the company and the automotive industry.
“We will firmly try to help the [Renesas] factory achieve swift restoration by helping it quickly acquire alternative manufacturing equipment,” Chief Cabinet Secretary Katsunobu Kato told a media conference on Monday.
US President Joe Biden signed an executive order at the end of February 2021 in an effort to help address the semiconductor shortage and reduce the financial burden on car companies. General Motors has already braced investors for a AU$2.6 billion reduction in profits due to the situation.
The fire comes after the Renesas production facility was forced to close for three days following an earthquake last month.
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