Renesas Electronics of Japan announced to the media on June 10, 2011 about the post-disaster recovery of the company's Nagase plant. Renesas announced at the press conference that the factory's product supply capacity (including alternative production parts) will be fully restored to the pre-quake level by the end of September. The time is one month ahead of the original planned end of October.
It is reported that Renesas' ability to restore production capacity earlier than originally planned was mainly due to the fact that exposure equipment manufacturers and ion injection equipment manufacturers completed the resumption of work in advance. The 300mm plant at Nagase Plant has a standby room for exposure equipment manufacturers. A4 paper with "Supplier's Office â—‹â—‹" is affixed to the room. This shows that equipment manufacturers can provide support in an emergency.
The Nagase Plant is resuming production with the support of its customers—automobile manufacturers, construction companies, and equipment and materials manufacturers. The maximum amount of manpower support achieved is about 2,500 people per day, and the total number is as high as 80,000. However, not all of these support are free. Although some of them are insurance claims, the company still included in the 2010 fiscal year settlement report a special loss of 49.5 billion yen due to the earthquake. The vast majority of them are the disaster losses of that factory.
What is more serious is that semiconductor manufacturers competing with Renesas are likely to take Renesas’s market share. Although Renesas stated on this point that it “has no serious influenceâ€, it has been pointed out that “Competitors have begun to profit from special needs†(related to the semiconductor industry). The reason for this is that, although it is generally accepted in the industry that there are production line authentication restrictions for automotive MCUs with strong customization, it is difficult to immediately switch to other company's products, but there are many products that can be replaced.
It is a long-standing claim that Japan’s semiconductor manufacturers’ competitiveness is declining. I’m also concerned that this earthquake will further accelerate the decline in the competitiveness of Japanese companies. The semiconductor industry once commented that "if the unprofitable production line is shut down by the earthquake, it will be able to 'slim' itself." In fact, the United States Freescale Semiconductor Corporation announced on April 6th, which is still less than one month after the earthquake, to shut down its affected production subsidiary, the Northeast Semiconductor Sendai Plant, ahead of schedule. Can Japanese manufacturers make such cruel decisions?
When Renesas’s factory in Hong Kong fully recovers its supply capacity at the end of September, it will account for 65% of the alternative production units, and only 35% of the factory’s own production. It is still not clear at what level the factory's production capacity will eventually recover. Renesas plans to publish its business policy based on the impact of the Great East Japan Earthquake in early July 2011, and will announce the results of the departure of the factory.
It is reported that Renesas' ability to restore production capacity earlier than originally planned was mainly due to the fact that exposure equipment manufacturers and ion injection equipment manufacturers completed the resumption of work in advance. The 300mm plant at Nagase Plant has a standby room for exposure equipment manufacturers. A4 paper with "Supplier's Office â—‹â—‹" is affixed to the room. This shows that equipment manufacturers can provide support in an emergency.
The Nagase Plant is resuming production with the support of its customers—automobile manufacturers, construction companies, and equipment and materials manufacturers. The maximum amount of manpower support achieved is about 2,500 people per day, and the total number is as high as 80,000. However, not all of these support are free. Although some of them are insurance claims, the company still included in the 2010 fiscal year settlement report a special loss of 49.5 billion yen due to the earthquake. The vast majority of them are the disaster losses of that factory.
What is more serious is that semiconductor manufacturers competing with Renesas are likely to take Renesas’s market share. Although Renesas stated on this point that it “has no serious influenceâ€, it has been pointed out that “Competitors have begun to profit from special needs†(related to the semiconductor industry). The reason for this is that, although it is generally accepted in the industry that there are production line authentication restrictions for automotive MCUs with strong customization, it is difficult to immediately switch to other company's products, but there are many products that can be replaced.
It is a long-standing claim that Japan’s semiconductor manufacturers’ competitiveness is declining. I’m also concerned that this earthquake will further accelerate the decline in the competitiveness of Japanese companies. The semiconductor industry once commented that "if the unprofitable production line is shut down by the earthquake, it will be able to 'slim' itself." In fact, the United States Freescale Semiconductor Corporation announced on April 6th, which is still less than one month after the earthquake, to shut down its affected production subsidiary, the Northeast Semiconductor Sendai Plant, ahead of schedule. Can Japanese manufacturers make such cruel decisions?
When Renesas’s factory in Hong Kong fully recovers its supply capacity at the end of September, it will account for 65% of the alternative production units, and only 35% of the factory’s own production. It is still not clear at what level the factory's production capacity will eventually recover. Renesas plans to publish its business policy based on the impact of the Great East Japan Earthquake in early July 2011, and will announce the results of the departure of the factory.
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