Renesas – Just a Bit Longer
On March 19 in the N3 building of the Renesas (6723.JP) Naka factory caught on fire. The fire broke out on the company’s 300mm production line and was later extinguished by the local fire department who determined that the fire was caused by and electrical problem with one of the plating tools on the line that overheated and burst into flames. The damaged area was ~600m2, or ~5% of the total cleanroom area, and while originally 11 units were thought to have been damaged, the total was upped to 23 at a later date, which was ~4.2% of the equipment in the N3 building. The company obviously halted production at N3 but was able to continue the 200mm line in the N2 building and the wafer testing operation. At the time, the company estimated that the impact on the company’s production would be ~17b yen ($156m US) per month.
One month late Renesas management set expectations for the reopening of the N3 line at ~50% capacity by the end of April and full production by the end of May with full shipping volume about a month later. The Japanese government also pushed tool manufacturers to accelerate delivery schedules so the fab could reopen quickly as the Naka plant produced ~33% of automotive semiconductors, particularly MCUs, which already were in short supply before the fire. It seems that things could take a bit longer with Renesas management indicating that 88% of the equipment to be replaced has been installed and is in operation as of mid-June and that full production levels will be reached by the end of this month, although questions remain as to when the impact will be felt by its customers.
We give credit to Renesas management in that they came close to their original target of 100 days, but we expect real full scale MCU or similar product production is still in the preliminary stages, with some process steps available but full line availability still developing. Once the line is in full operation, which we would expect in early July, it will take between two and three weeks, depending on the product, to begin volume shipping to customers, which would mean early August would be when customers would begin to receive product, other than small volumes. Much will depend on yield, as tools will need to be tuned and glitches removed, so the positive impact on supply could still lag a bit in August according to supplier sources.
One month late Renesas management set expectations for the reopening of the N3 line at ~50% capacity by the end of April and full production by the end of May with full shipping volume about a month later. The Japanese government also pushed tool manufacturers to accelerate delivery schedules so the fab could reopen quickly as the Naka plant produced ~33% of automotive semiconductors, particularly MCUs, which already were in short supply before the fire. It seems that things could take a bit longer with Renesas management indicating that 88% of the equipment to be replaced has been installed and is in operation as of mid-June and that full production levels will be reached by the end of this month, although questions remain as to when the impact will be felt by its customers.
We give credit to Renesas management in that they came close to their original target of 100 days, but we expect real full scale MCU or similar product production is still in the preliminary stages, with some process steps available but full line availability still developing. Once the line is in full operation, which we would expect in early July, it will take between two and three weeks, depending on the product, to begin volume shipping to customers, which would mean early August would be when customers would begin to receive product, other than small volumes. Much will depend on yield, as tools will need to be tuned and glitches removed, so the positive impact on supply could still lag a bit in August according to supplier sources.
Clean Room at Renesas - Naka Plant - April 19, 2021 - Source: Renesas
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