Toyota, Nissan, Honda and other Japanese automakers scrambled on Monday to assess the production impact of a fire at a Renesas Electronics automotive chip plant that could aggravate a global semiconductor shortage. “We are gathering information and trying to see if this will affect us or not,” a Honda spokesperson said. Other car makers including Toyota and Nissan said they too were assessing the situation. The effect on car makers could spread beyond Japan to other auto companies in Europe and the United States because Renesas has around a 30% global share of micro control unit chips used in cars. Renesas said it will take at least a month to restart production on a 300 mm (millimeter) wafer line at its Naka plant in northeast Japan after an electrical fault caused machinery to catch fire on Friday and poured smoke into the sensitive clean room. Two-thirds of production at the affected line is automotive chips. The company also has a 200 mm (millimeter) wafer line at the Naka plant, which has not been affected. Concerns on the impact of the fire on production sent auto shares sliding in Tokyo on Monday, with the big three, Toyota, Honda and Nissan, down more than 2% by the midday break. Renesas shares tumbled as much as 5.5% and were down 3.9% midday. The benchmark Topix index shed 1.1%. “It will probably take more than a month to return to normal supply. Given that, even Toyota will face very unstable production in April and May,” said Seiji Sugiura, senior analyst at Tokai Tokyo Research Institute. “I think Honda, Nissan and other makers will also be facing a difficult situation.” Semiconductors such as those made by Renesas are used extensively in cars, including to monitor engine performance, manage steering or automatic windows, and in sensors used in parking and entertainment systems.An employee wearing protective equipment pushes a cart at a semiconductor production facility for Renesas Electronics during a government organized tour for journalists in Beijing, May 14, 2020.Nissan and Honda had already been forced to scale back production plans because of the chip shortage resulting from burgeoning demand from consumer electronic makers and an unexpected rebound in car sales from a slump during the early months of the coronavirus pandemic. Toyota, which ensured parts suppliers had enough stocks of chips, has fared better so far. “It could take three months or even half a year for a full recovery,” said Akira Minamikawa, analyst at technology research company Omdia. “This has happened when chip stockpiles are low, so the impact is going to be significant,” he added. Government promises help Renesas said it customers, which are mostly automotive parts makers rather than the car companies, will begin to see chip shipments fall in around a month. The company declined to say which machine caught fire because of the electrical fault or which company made it. The Japanese government promised help for the auto industry. “We will firmly try to help the Naka factory achieve swift restoration by helping it quickly acquire alternative manufacturing equipment,” Chief Cabinet Secretary Katsunobu Kato told a regular news conference on Monday. The latest incident at the Naka facility comes after an earthquake last month shut down production for three days and forced Renesas to further deplete chip stocks to keep up with orders. The plant was closed for three months in 2011 following the deadly earthquake that devastated Japan’s northeast coast.
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U.S. President Joe Biden announced Friday he plans to nominate former U.S. Sen. Bill Nelson to lead the U.S. space agency, NASA.In a statement, the White House says as a member of the U.S. House of Representatives and a three-term senator from Florida, Nelson, a Democrat, chaired committees on space, science and transportation. They also note he co-authored the landmark 2010 NASA bill which set the current path of private-sector partnership. In the statement, the White House notes Nelson, as a congressman in 1986, even flew on a six-day space shuttle mission. He currently serves on the NASA advisory council.Nelson, if approved by the Senate, would take over the agency as commercial space projects are already shuttling supplies and astronauts to the International Space Station.NASA is also preparing to return astronauts to the moon in the next four years.Nelson’s nomination has already received the endorsement of Sen. Marco Rubio, a Florida Republican.“I cannot think of anyone better to lead NASA than Bill Nelson,” Rubio tweeted on Thursday.
If approved, Nelson would be NASA’s 14th administrator, and would take over from the Trump administration’s appointee, former Oklahoma congressman Jim Bridenstine.
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