UPDATE 6 - Notice Regarding the Semiconductor Manufacturing Factory (Naka Factory) Fire
Renesas Electronics Corporation (TSE:6723), a premier supplier of advanced semiconductor solutions, today held a third press conference regarding the occurrence of a fire on March 19, 2021 at part of the processes in the N3 Building (300mm line) of Naka Factory (located in Hitachinaka, Ibaraki Prefecture) of Renesas Semiconductor Manufacturing Co., Ltd, a wholly-owned manufacturing subsidiary of Renesas.
The press conference covered the latest outlook on production and shipment. The contents of the press conference are summarized below. Once again, we would like to give our sincerest apologies to neighboring residents, partner companies, relevant authorities and all those involved for the trouble.
Date and time of the press conference
- Monday, April 19, 2021 at 2:00 pm to 3:00 pm JST
Speakers at the press conference
- Hidetoshi Shibata, President and CEO
- Masahiko Nozaki, Executive Vice President, General Manager of Production & Technology Unit
- Shuhei Shinkai, Senior Vice President and CFO
Overview of the press conference
Timeline for restarting production
As of 9:00 am April 17, 2021, production restarted at the N3 Building. As of April 17, 2021, our production capacity is just under 10% in comparison to the production capacity before the occurrence of the fire. We aim to recover the capacity to 30% by the end of this week, 50% by the end of April and return to 100% by the end of May.
Manufacturing and shipment status
In regard to shipment of products manufactured in the N3 Building, we will gradually return to the shipment levels before the occurrence of the fire by starting the shipment of work-in-processes which was being produced at the time of the fire. Although this will depend on the product, following the lead time of a typical product, we stated at the March 30 press conference that we expect 100% recovery of product shipment of products manufactured in the N3 Building to customers approximately 100 days after the fire.
At this current time, we expect there to be a delay of about 7 to 10 days from the approximately 100 days after the fire for 100% recovery of product shipment. On the other hand, the effect of alternative production is expected to come sooner than initially anticipated, and the amount is larger than expected, contributing to the production.
Procurement of manufacturing equipment
Within the 23 units of equipment impacted by the fire, we were able to confirm procurement for 17 units within April. 1 unit is expected to be procured within May, and we are currently coordinating the delivery date of 1 unit. In regard to the remaining 4 units, the capacity of the newly procured equipment is higher than the existing equipment, and we have an outlook on alternative production. Therefore, we are able to achieve 100% recovery without procuring these equipment in the short term. To maintain and increase capacity in the long term, we will continue to work with equipment manufactures to procure the remaining 4 units.
Plans for alternative production
If 2 months’ worth of the N3 Building’s manufacturing capacity is alternatively produced, for products that can be outsourced, the percentage of alternatively produced products from the initial 90% stated at the previous press conference on March 30, 2021, is expected to increase to 98%, through moving up production dates and increasing manufacturing capacity.
Fire prevention measures on equipment
The fire started in the Cu plating equipment, and there used to be 7 units of the Cu plating equipment available before the fire. 3 units were damaged by the fire, including the unit which started the fire, and 4 units remain that were not impacted. These 4 units use a different battery formation structure compared to the unit which started fire. We therefore do not expect any similar incidents with the same cause for these 4 units.
As a countermeasure to another fire should occur caused by other reasons, though unexpected, we have already placed CO2 fire extinguishers and automatic dampers. In May, we will also place sensors to detect smoke and heat. In June, we will link the sensors to introduce a mechanism in which CO2 extinguishing materials will automatically be released. We believe that if a fire should occur, we can control damages to a smaller area compared to the fire on March 19.
Renesas will continue to strive for the safety of the community and with the support of the fire department and the police as well as the relevant authorities, we will work to prevent a reoccurrence.
www.renesas.com
