Yesterday, Renesas released the latest status of its Naka factory, stating that from 9:00 am on April 17, 2021, the production of the N3 building has restarted, and the production capacity at that time was less than 10% compared to the production capacity before the fire. Renesas aims 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.
In regard to shipment of products manufactured in the N3 Building, Renesas 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, Renesas stated at the March 30 press conference that they 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, Renesas expects 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.
Within the 23 units of equipment impacted by the fire, Renesas was able to confirm procurement for 17 units within April. 1 unit is expected to be procured within May, and they 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 they have an outlook on alternative production. Therefore, Renesas said they are able to achieve 100% recovery without procuring these equipment in the short term. To maintain and increase capacity in the long term, Renesas will continue to work with equipment manufactures to procure the remaining 4 units.
