According to Japanese media reports, Renesas Electronics will temporarily shut down 13 factories between April and September 2019.
The temporarily closed factories are front-end process plants and back-end process plants. Among them, the six front-end process plants in Japan will be suspended for one month from the end of April, and will be suspended for one month in August. It will also shut down three Japanese back-end facilities for several weeks from April to September. In addition, four overseas factories in China and Malaysia will also be closed for several weeks.
According to Japanese media, due to the trade war between China and the United States, demand from China has fallen sharply. In order to eliminate the divergence between supply and demand, Renesas Electronics has implemented production adjustments since last year, and the input of production lines has been greatly reduced since August 2018. . The temporary closure of the plant may be a further adjustment of the company. From the decision of Renesas Electronics, we can see that the current demand is much lower than expected.
According to analysis, according to the decision to temporarily close the factory and the adjustment of the production line earlier, it is expected that Renesas' annual production in 2019 will drop by more than 10%. According to Renesas, the company hopes that a sharp cut in production will reduce inventory growth and achieve more efficient production in the future.