Automotive chip maker says it’s nearly recovered from blaze

Business

Ford pickup trucks built lacking computer chips are shown in parking lot storage in Dearborn, Mich., Tuesday, May 4, 2021. Automakers are cutting production as they grapple with a global shortage of computer chips, and that’s making dealers nervous. (AP Photo/Paul Sancya)

DETROIT (AP) — A fire-damaged Japanese factory that supplies many of the auto industry’s computer chips is producing about 88% of what it was making before the March blaze, its owner says.

Renesas Electronics Corp. says in a statement Tuesday that replacements for fire-damaged equipment arrived on May 27, and should be running in mid-June.

That would allow the company to return to full production.

The March 19 Renesas fire and a worldwide shortage of computer chips have wreaked havoc on auto industry production schedules.

They have forced companies to cut production and allocate scarce chips to higher-margin models.

The production cuts have crimped the supply of new vehicles causing shortages and raising new and used vehicle prices.

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