Automotive chipmaker Renesas lowers production due to fire

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Renesas Electronics Corp., an influential company in the automotive chipmaking business, has suffered a setback to its production due to a fire in one of its major plants, localized in Japan, in the city of Hitachinaka. The event occurred before dawn, on Friday.

Since the process of manufacturing an automotive microchip requires extreme care, the fire called for a halt in production and the suspension of the plant, even though the building itself was not damaged. The cause of the fire was electrical in nature, but is still being investigated. No employees were injured.

The microchips produced by the company are used in many electronic components of vehicles, such as those related to batteries and digital devices. The automotive industry has been impacted by a microchip shortage for a while now, and since it requires microchips for production, this event will likely affect vehicle producers even further.

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