According to reports, Renesas Electronics told the media yesterday that the company plans to increase the production capacity of automotive MCUs by 50% starting in 2021.

Taking the output of high-end MCUs as an example, Renesas’ monthly production capacity will expand 1.5 times to about 40,000 pieces, mainly by way of outsourcing foundries. In terms of low-end MCU output, it is planned to increase the production capacity of Renesas’ own fabs to 30,000 units per month, an increase of 70% over the current level.

The report pointed out that since the end of June, the backlog of Renesas automotive chips has increased by about 30%. Although the supply has increased, the supply has so far been unable to meet the demand. In view of strong market demand, Renesas has increased its long-term target for operating profit margin from 20% to 25-30%.

In addition, Renesas also announced the amount of equipment investment as of December 2021, which is expected to exceed 80 billion yen. The company expects that the equipment investment in 2022 will reach about 60 billion yen, which will greatly exceed the average annual level of 20 billion yen before 2020.