TOKYO (Reuters) - Japan has asked some Taiwanese manufacturers to cooperate in alternative production of semiconductors, industry minister Hiroshi Kajiyama said on Tuesday, after a chip plant owned by Renesas Electronic Corp was hit by a fire this month.
"We are in communication with several manufacturing equipment makers (in Taiwan) to speed up procurement," Kajiyama told reporters after the cabinet meeting.
"The ministry will also work together for a swift recovery by using all possible means," he added.
A Renesas-owned Naka chip plant in northeast Japan was hit by fire earlier this month due to a power surge in one of the machines, putting more pressure on the broader chips industry amid a global shortage of semiconductors.
The company, which has about a 30% share of the global market for microcontroller unit chips used in cars, had initially said 11 machines were damaged in the fire. But it now believes the situation is more serious than first thought.
An extended outage could add to a global shortages of chips which is disrupting some production of cars and electronic devices.
The Japanese government has called on equipment makers to help Renesas restore its production, with bureaucrats contacting companies at home and overseas to request they provide parts and machinery to the fire-hit company, a trade ministry official told Reuters on Wednesday.
(Reporting by Eimi Yamamitsu; Editing by Shri Navaratnam)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU