Renesas chip foundry fire could harm Apple's supply chain

Posted:
in General Discussion
A fire at chipmaker Renesas could have a considerable impact on semiconductor supplies around the world, with it potentially causing some supply chain issues for Apple alongside major car producers.

The 300nm production line at Renesas' Naka facility
The 300nm production line at Renesas' Naka facility


A chip facility in Naka city near Tokyo, Japan caught fire on Friday. The fire, within one of the clean rooms at the plant, halted production of 300mm wafers, as well as damaging 2 percent of the equipment at the facility.

Renesas chief executive Hidetoshi Shibata told a news conference on Sunday "We are concerned that there will be a massive impact on chip supplies," reports the Financial Times. "We will pursue every means possible to minimize the impact."

Japanese producers such as Renesas have worked to diversify their supply chains following the 2011 earthquake and tsunami, enabling the production of roughly two-thirds of affected chip lines to be moved to other facilities. However, the ongoing global issues relating to semiconductor production will make it hard to secure any spare capacity from foundries like TSMC.

Apple's products are unlikely to be directly affected by the fire, as the facility is thought to service automotive clients primarily. Renesas is listed as one of Apple's suppliers on the main supplier list, with the facility identified as one of its manufacturing locations working on components for Apple's products.

The increase in strain on other facilities and chip producers may be a bigger factor for Apple in general, given any components sourced from the plant will have to be made elsewhere in the immediate future.

The fire is likely to cost Renesas a hefty amount of revenue. Shibata estimates that a month of downtime to fix the facility will cost the company in the region of 17 billion yen ($156 million) in revenue.

Renesas is also in the process of acquiring Dialog Semiconductor, a UK-based chip producer and major Apple supplier, in a deal valued at 4.9 billion euros ($5.9 billion). It is anticipated that the fire won't cause issues with the acquisition, which is expected to complete by the end of 2021.
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Comments

  • Reply 1 of 39
    tedz98tedz98 Posts: 76member
    What’s amazing is the decline of chip fab capabilities in the United States. IBM used to be a big player running their own foundries. They’ve basically exited that business. Intel is falling behind and can’t compete with TSMC. AMD has lost ground. US auto manufacturers have had to slow production lines due to chip availability issues. The US really needs to find ways to improve its abilities to create wafers and chips. Chip manufacturing capabilities are no where on the Biden agenda. That has to change.
  • Reply 2 of 39
    gatorguygatorguy Posts: 23,302member
    tedz98 said:
    What’s amazing is the decline of chip fab capabilities in the United States. ... The US really needs to find ways to improve its abilities to create wafers and chips. Chip manufacturing capabilities are no where on the Biden agenda. That has to change.


    You aren't following news. Biden has already begun addressing it.
     https://www.cnbc.com/2021/02/24/biden-signs-executive-order-to-address-chip-shortage-through-a-supply-chain-review.html
    tmaymuthuk_vanalingambaconstangAlex1NbadmonkapplguyRayz2016GeorgeBMacmknelson
  • Reply 3 of 39
    lkrupplkrupp Posts: 9,636member
    gatorguy said:
    tedz98 said:
    What’s amazing is the decline of chip fab capabilities in the United States. ... The US really needs to find ways to improve its abilities to create wafers and chips. Chip manufacturing capabilities are no where on the Biden agenda. That has to change.


    You aren't following news. Biden has already begun addressing it.
     https://www.cnbc.com/2021/02/24/biden-signs-executive-order-to-address-chip-shortage-through-a-supply-chain-review.html
    Biden and his executive orders can’t do a goddamn thing to relieve the chip shortage. It’s all just chest thumping by the new alpha male gorilla in the Whitehouse. And the politicians CAUSED the chip shortage in the first place with their draconian lockdowns. 
    edited March 21 JanNL
  • Reply 4 of 39
    KuyangkohKuyangkoh Posts: 761member
    lkrupp said:
    gatorguy said:
    tedz98 said:
    What’s amazing is the decline of chip fab capabilities in the United States. ... The US really needs to find ways to improve its abilities to create wafers and chips. Chip manufacturing capabilities are no where on the Biden agenda. That has to change.


    You aren't following news. Biden has already begun addressing it.
     https://www.cnbc.com/2021/02/24/biden-signs-executive-order-to-address-chip-shortage-through-a-supply-chain-review.html
    Biden and his executive orders can’t do a goddamn thing to relieve the chip shortage. It’s all just chest thumping by the new alpha male gorilla in the Whitehouse. And the politicians CAUSED the chip shortage in the first place with their draconian lockdowns. 
    Career Politicians cant do anything about the shortages which was created by greed from the US chip maker. We are done long time ago on that areas....
    applguy
  • Reply 5 of 39
    gatorguygatorguy Posts: 23,302member
    lkrupp said:
    gatorguy said:
    tedz98 said:
    What’s amazing is the decline of chip fab capabilities in the United States. ... The US really needs to find ways to improve its abilities to create wafers and chips. Chip manufacturing capabilities are no where on the Biden agenda. That has to change.


    You aren't following news. Biden has already begun addressing it.
     https://www.cnbc.com/2021/02/24/biden-signs-executive-order-to-address-chip-shortage-through-a-supply-chain-review.html
    Biden and his executive orders can’t do a goddamn thing to relieve the chip shortage. It’s all just chest thumping by the new alpha male gorilla in the Whitehouse. And the politicians CAUSED the chip shortage in the first place with their draconian lockdowns. 
    "President Joe Biden said on Wednesday he would seek $37 billion in funding for legislation to supercharge chip manufacturing in the United States as a shortfall of semiconductors has forced U.S. automakers and other manufacturers to cut production."

    It's not just an executive order to "study it".
    muthuk_vanalingambaconstangtmayviclauyycAlex1NapplguyGeorgeBMac
  • Reply 6 of 39
    flydogflydog Posts: 1,031member
    tedz98 said:
    What’s amazing is the decline of chip fab capabilities in the United States. IBM used to be a big player running their own foundries. They’ve basically exited that business. Intel is falling behind and can’t compete with TSMC. AMD has lost ground. US auto manufacturers have had to slow production lines due to chip availability issues. The US really needs to find ways to improve its abilities to create wafers and chips. Chip manufacturing capabilities are no where on the Biden agenda. That has to change.

    It's easy to criticize without offering any solution, especially when one is completely ignorant.

    What do you propose we do, invade Taiwan and comandeer the factories?  Chips are primarily manufactured overseas because of cheap labor and lax regulations. It's not a question of "improv[ing] . . . abilitites to create wafers and chips."  


    baconstangAlex1NGeorgeBMac
  • Reply 7 of 39
    mac_dogmac_dog Posts: 919member
    lkrupp said:
    gatorguy said:
    tedz98 said:
    What’s amazing is the decline of chip fab capabilities in the United States. ... The US really needs to find ways to improve its abilities to create wafers and chips. Chip manufacturing capabilities are no where on the Biden agenda. That has to change.


    You aren't following news. Biden has already begun addressing it.
     https://www.cnbc.com/2021/02/24/biden-signs-executive-order-to-address-chip-shortage-through-a-supply-chain-review.html
    Biden and his executive orders can’t do a goddamn thing to relieve the chip shortage. It’s all just chest thumping by the new alpha male gorilla in the Whitehouse. And the politicians CAUSED the chip shortage in the first place with their draconian lockdowns. 
    So...according to you, the US has fallen behind in just the past year. No comment about the past 4 years and the knuckle-dragger who previously occupied the same White House—with all the power of the senate at his fingertips? Shut up. 
    baconstangtmayviclauyycDogpersonapplguyRayz2016GeorgeBMacmknelson
  • Reply 8 of 39
    cpsrocpsro Posts: 2,932member
    At least a lot of the fab technology is HQ’d in the West with ASML, which has operations in the U.S.
  • Reply 9 of 39
    avon b7avon b7 Posts: 5,959member
    cpsro said:
    At least a lot of the fab technology is HQ’d in the West with ASML, which has operations in the U.S.
    True but ASML has been 'leaned on' by the US to prevent it selling to China.

    Of course China isn't waiting for politics to get out the way:

    https://pubmed.ncbi.nlm.nih.gov/32559096/
    GeorgeBMac
  • Reply 10 of 39
    tmaytmay Posts: 5,498member
    avon b7 said:
    cpsro said:
    At least a lot of the fab technology is HQ’d in the West with ASML, which has operations in the U.S.
    True but ASML has been 'leaned on' by the US to prevent it selling to China.

    Of course China isn't waiting for politics to get out the way:

    https://pubmed.ncbi.nlm.nih.gov/32559096/
    AFAIK, there isn't any foundry in China below a 10 nm node, so your research paper isn't really going to fix that very fast, is it.

    https://www.gizchina.com/2020/12/24/smic-cant-go-below-10nm-whats-the-way-out-for-chinese-foundries/

    The EU, it's GF stalled at 14/12 nm, has a better chance of advancing to 5 nm sooner than China has, due to access to semiconductor processing and EUV lithography equipment. It's really just a question of investment.

    Why aren't you pushing that?

    edited March 21 watto_cobra
  • Reply 11 of 39
    avon b7avon b7 Posts: 5,959member
    tmay said:
    avon b7 said:
    cpsro said:
    At least a lot of the fab technology is HQ’d in the West with ASML, which has operations in the U.S.
    True but ASML has been 'leaned on' by the US to prevent it selling to China.

    Of course China isn't waiting for politics to get out the way:

    https://pubmed.ncbi.nlm.nih.gov/32559096/
    AFAIK, there isn't any foundry in China below a 10 nm node, so your research paper isn't really going to fix that very fast, is it.

    https://www.gizchina.com/2020/12/24/smic-cant-go-below-10nm-whats-the-way-out-for-chinese-foundries/

    The EU, it's GF stalled at 14/12 nm, has a better chance of advancing to 5 nm sooner than China has, due to access to semiconductor processing and EUV lithography equipment. It's really just a question of investment.

    Why aren't you pushing that?

    Define 'fast'.

    I'm not pushing the EU option because the EU is in the West. See the comment I was replying to. 
  • Reply 12 of 39
    yojimbo007yojimbo007 Posts: 1,149member
    tedz98 said:
    What’s amazing is the decline of chip fab capabilities in the United States. IBM used to be a big player running their own foundries. They’ve basically exited that business. Intel is falling behind and can’t compete with TSMC. AMD has lost ground. US auto manufacturers have had to slow production lines due to chip availability issues. The US really needs to find ways to improve its abilities to create wafers and chips. Chip manufacturing capabilities are no where on the Biden agenda. That has to change.
    Biden has  got to go .. that will solve much bigger problems..
    rattlhed
  • Reply 13 of 39
    tzeshantzeshan Posts: 2,351member
    tedz98 said:
    What’s amazing is the decline of chip fab capabilities in the United States. IBM used to be a big player running their own foundries. They’ve basically exited that business. Intel is falling behind and can’t compete with TSMC. AMD has lost ground. US auto manufacturers have had to slow production lines due to chip availability issues. The US really needs to find ways to improve its abilities to create wafers and chips. Chip manufacturing capabilities are no where on the Biden agenda. That has to change.
    Biden has  got to go .. that will solve much bigger problems..
    Biden inherited the problems created by Trump. Biden is in office only two months. 
    Dogpersonmknelson
  • Reply 14 of 39
    hexclockhexclock Posts: 993member
    tzeshan said:
    tedz98 said:
    What’s amazing is the decline of chip fab capabilities in the United States. IBM used to be a big player running their own foundries. They’ve basically exited that business. Intel is falling behind and can’t compete with TSMC. AMD has lost ground. US auto manufacturers have had to slow production lines due to chip availability issues. The US really needs to find ways to improve its abilities to create wafers and chips. Chip manufacturing capabilities are no where on the Biden agenda. That has to change.
    Biden has  got to go .. that will solve much bigger problems..
    Biden inherited the problems created by Trump. Biden is in office only two months. 
    US chipmaking has been on the decline for decades. US companies have been outsourcing labor for years, so you really can't blame Trump for that, fashionable as it is.
    rattlhedwatto_cobra
  • Reply 15 of 39
    crowleycrowley Posts: 9,123member
    tedz98 said:
    What’s amazing is the decline of chip fab capabilities in the United States. IBM used to be a big player running their own foundries. They’ve basically exited that business. Intel is falling behind and can’t compete with TSMC. AMD has lost ground. US auto manufacturers have had to slow production lines due to chip availability issues. The US really needs to find ways to improve its abilities to create wafers and chips. Chip manufacturing capabilities are no where on the Biden agenda. That has to change.
    Biden has  got to go .. that will solve much bigger problems..
    What problems has he created in two months?
    tmayGeorgeBMacwatto_cobra
  • Reply 16 of 39
    GeorgeBMacGeorgeBMac Posts: 10,722member
    tmay said:
    avon b7 said:
    cpsro said:
    At least a lot of the fab technology is HQ’d in the West with ASML, which has operations in the U.S.
    True but ASML has been 'leaned on' by the US to prevent it selling to China.

    Of course China isn't waiting for politics to get out the way:

    https://pubmed.ncbi.nlm.nih.gov/32559096/
    AFAIK, there isn't any foundry in China below a 10 nm node, so your research paper isn't really going to fix that very fast, is it.

    ...

    After the U.S. attacked them, there will be.
    They now know that they cannot depend on the U.S.   In fact, they now know that they have to defend themselves against the U.S. by creating a reliable supply chain independent of the U.S. and its influence.

    We are pushing them away from being a western partner and into being a partner of those opposed to the west:   Russia, N Korea, Iran, etc...
  • Reply 17 of 39
    GeorgeBMacGeorgeBMac Posts: 10,722member
    hexclock said:
    tzeshan said:
    tedz98 said:
    What’s amazing is the decline of chip fab capabilities in the United States. IBM used to be a big player running their own foundries. They’ve basically exited that business. Intel is falling behind and can’t compete with TSMC. AMD has lost ground. US auto manufacturers have had to slow production lines due to chip availability issues. The US really needs to find ways to improve its abilities to create wafers and chips. Chip manufacturing capabilities are no where on the Biden agenda. That has to change.
    Biden has  got to go .. that will solve much bigger problems..
    Biden inherited the problems created by Trump. Biden is in office only two months. 
    US chipmaking has been on the decline for decades. US companies have been outsourcing labor for years, so you really can't blame Trump for that, fashionable as it is.

    You can blame Trump for shutting down the Chinese chip factories that we rely on.   The shortages are mostly in the types of chips that they made.   But, we shut down the factories and then whine that we can't buy what they want to sell.  
  • Reply 18 of 39
    tzeshantzeshan Posts: 2,351member
    hexclock said:
    tzeshan said:
    tedz98 said:
    What’s amazing is the decline of chip fab capabilities in the United States. IBM used to be a big player running their own foundries. They’ve basically exited that business. Intel is falling behind and can’t compete with TSMC. AMD has lost ground. US auto manufacturers have had to slow production lines due to chip availability issues. The US really needs to find ways to improve its abilities to create wafers and chips. Chip manufacturing capabilities are no where on the Biden agenda. That has to change.
    Biden has  got to go .. that will solve much bigger problems..
    Biden inherited the problems created by Trump. Biden is in office only two months. 
    US chipmaking has been on the decline for decades. US companies have been outsourcing labor for years, so you really can't blame Trump for that, fashionable as it is.
    Let me explain if you can understand. Trump and Republicans try to stop China's economic growth. But China was already the largest consumer of semiconductors. Many chip companies lowered their long time capital expenditures. But the high tech growth did not stop. 5G, AI, and auto industry keep increasing their demand for chips. Now Biden is in office, the pandemic is nearing an end, the world economy is recovering, as a result the chip industry could not satisfy the demand. 
  • Reply 19 of 39
    gatorguygatorguy Posts: 23,302member
    hexclock said:
    tzeshan said:
    tedz98 said:
    What’s amazing is the decline of chip fab capabilities in the United States. IBM used to be a big player running their own foundries. They’ve basically exited that business. Intel is falling behind and can’t compete with TSMC. AMD has lost ground. US auto manufacturers have had to slow production lines due to chip availability issues. The US really needs to find ways to improve its abilities to create wafers and chips. Chip manufacturing capabilities are no where on the Biden agenda. That has to change.
    Biden has  got to go .. that will solve much bigger problems..
    Biden inherited the problems created by Trump. Biden is in office only two months. 
    US chipmaking has been on the decline for decades. US companies have been outsourcing labor for years, so you really can't blame Trump for that, fashionable as it is.

    You can blame Trump for shutting down the Chinese chip factories that we rely on.   The shortages are mostly in the types of chips that they made.   But, we shut down the factories and then whine that we can't buy what they want to sell.  
    It is? According to what's factually reported only around 10 percent of the entire's world’s chip production comes from SMIC, owned in part (at least) by the Chinese government, and the company you remember reading Trump ordered banned from the US marketplace in 2020. The shortages on our own supplies would have been far less than 10%. AFAICT it was the only Chinese chip fab banned from the US unless you have evidence to the contrary. If so then your blame seems misplaced.

    But why were they banned?
    The U.S. government 
    restricted American companies from selling to SMIC, citing its ties to the Chinese military. 
    edited March 22 tmay
  • Reply 20 of 39
    GeorgeBMacGeorgeBMac Posts: 10,722member
    gatorguy said:
    hexclock said:
    tzeshan said:
    tedz98 said:
    What’s amazing is the decline of chip fab capabilities in the United States. IBM used to be a big player running their own foundries. They’ve basically exited that business. Intel is falling behind and can’t compete with TSMC. AMD has lost ground. US auto manufacturers have had to slow production lines due to chip availability issues. The US really needs to find ways to improve its abilities to create wafers and chips. Chip manufacturing capabilities are no where on the Biden agenda. That has to change.
    Biden has  got to go .. that will solve much bigger problems..
    Biden inherited the problems created by Trump. Biden is in office only two months. 
    US chipmaking has been on the decline for decades. US companies have been outsourcing labor for years, so you really can't blame Trump for that, fashionable as it is.

    You can blame Trump for shutting down the Chinese chip factories that we rely on.   The shortages are mostly in the types of chips that they made.   But, we shut down the factories and then whine that we can't buy what they want to sell.  
    It is? According to what's factually reported only around 10 percent of the entire's world’s chip production comes from SMIC, owned in part (at least) by the Chinese government, and the company you remember reading Trump ordered banned from the US marketplace in 2020. The shortages on our own supplies would have been far less than 10%. AFAICT it was the only Chinese chip fab banned from the US unless you have evidence to the contrary. If so then your blame seems misplaced.

    But why were they banned?
    The U.S. government 
    restricted American companies from selling to SMIC, citing its ties to the Chinese military. 

    So, Trump, in his cold war with China, shut down at least one factory that made the kind of chips we need (based on his usual bullshit) -- and now you whine that we don't have the chips we need.

    Got it.
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