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Global Commodity Intelligence

Q2 2025 | APRIL - JUNE

Overview and Impact of the Renesas Factory Fire

Derek Oh, Global Commodity Manager
Mitsuko Yamamoto, Global Commodity Manager

Renesas Electronics Corporation held a press conference on March 21 regarding the occurrence of a fire on March 19 at part of the processes in the N3 Building (300mm line) of Naka Factory in Hitachinaka, Ibaraki Prefecture. This factory is part of Renesas Semiconductor Manufacturing Co., Ltd., a wholly-owned manufacturing subsidiary of Renesas. The fire was extinguished on the same day it began on March 19, 2021

Recommended Actions

GCMs and Division Commodity Managers (DCMs) should reach out to affected BUs with further information and discussion on supply and demand gaps.
GCMs and DCMs should access further coverage on impacted parts and recommend guidance to mitigate risks.
For affected parts, do not cancel any outstanding orders unless deemed necessary. It's highly recommended to communicate with suppliers to check on the delivery status and secure the allocation.
Request approval from end customers to issue longer-term POs and plan safety stocks.
Consider qualified parts on alternative AVL and open market.

The fire occurred on the first floor of the N3 Building (300mm line), Naka Factory, Renesas Semiconductor Manufacturing Co., Ltd. It began in the early morning of March 19 and was extinguished several hours later once the fire department and other authorities arrived.

Impact of the Fire to the Renesas Facility

Renesas confirmed no casualties to the employees.
While there was no damage to the building, confirmed damages to some of the utility equipment such as the pure water supply and the air conditioning as well as to some of the manufacturing equipment.
The damaged area is approximately 600m2 , which is around 5% of the cleanroom area (12,000m2 ) of the N3 Building (300mm line).
The damaged manufacturing equipment was 11 units, which is around 2% of the manufacturing equipment of the N3 Building (300mm line).
The production at N3 Building (300mm line) has temporarily halted. Renesas will make an announcement on progress to resume production.
The production at N2 Building (200mm line) and the WT Building (wafter testing) is operating as usual and will continue product shipment.
The impact to work-in-progress materials is undetermined and is currently under investigation.
The financial impact is estimated at JPY 17 billion per month (approx. USD $156 million).

What You Should Know
The product focus of the impacted cleanroom is reported to be two-thirds automotive with the remaining under Industrial, Infrastructure, and IoT.

Products produced in these Fabs would be planned for Q2 shipments (closer to the end of the quarter), with most of the WIP for Q3 shipments based on where they were in the semiconductor manufacturing process flow. To restart the fab requires a detailed restarting process flow, repairing damaged equipment and doing a complete quality qualification. Renesas has stated that restart of production is targeted within a month and that two-thirds of the products manufactured in the cleanroom can be transferred to other Renesas fabs and/or external qualified foundry providers.

Impact to Jabil
We expect delays in deliveries of orders placed directly to Renesas and through Renesas distributors. Renesas' assessment of what is in test, what is in WIP, and what products will be impacted is in progress. Global Commodity Managers (GCMs) will assess this impact in terms of JPNs and a followup report will be provided to impacted BUs.

Please contact the respective GCM/DCM for support on the Jabil commodities:

Microprocessor (includes MCU and High-End Semi)– Ryan Chen, Sally Wei and CK Chow
Memory (EEPROM) – Brad Crouch
Analog Signal Chain (LCD Driver) – Derek Oh
Logic – Derek Oh