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Renesas Electronics Reports Effects of the Tohoku District Pacific Offshore Earthquake and Responses
An emergency response task force was established at our headquarters in Tokyo immediately after the earthquake. Since then, it has been constantly communicating with task forces at our plants, offices, and affiliated companies around the world to gather information and offer support and direction for the execution of our response plan. As a result, we are rapidly gaining a clearer grasp of the situation and proceeding step by step toward recovery.
After a preliminary evaluation shortly after the earthquake, the company reported on its website that five front-end factories and three back-end factories shut production temporarily. Now, two weeks later, only one front-end factory, Naka, is shut down due to earthquake damage.
However, the affected regions where these eight factories are located are still experiencing shortages of electricity and fuel supply and unstable logistics networking among other effects caused by the earthquake. Although seven of these factories are restarting production, their output levels are not yet at pre-earthquake levels due to these continued unstable, but improving conditions.
For Naka, we dispatched an expert team of engineers, machinists and structural designers to quickly and accurately assess the damage and develop a recovery plan. Naka's situation is also unique in that it has very limited power supply due to a nearby electrical substation being severely damaged in the earthquake. Despite these challenges, Renesas' President Yasushi Akao proclaimed that Naka will resume production in July. The major factor in setting this direction was Mr. Akao's personal inspection of the facility and agreement with the assessment team that we now know for sure that the production facilities and clean room can be used.
In Japan, we have 10 front-end wafer fabrication sites and 12 back-end assembly and test sites. Five front-end and nine back-end factories were not impacted by the earthquake and subsequent power issues, and they are continuing full production.
In addition to Japan, we have one front-end and two back-end sites in China, and four front-end and back-end sites in Singapore and Malaysia operating without interruption. And we are still operating our entire R&D, design and support activity, temporarily relocating some operations to a non-affected region of the country, if necessary.
We are intensely working to utilize all our resources to minimize the impact on our valued customers, and considering all possible means to deliver products to customers, including acceleration of shipping finished goods, completing work-in-process, shifting production to our other factories and providing alternative products where possible.
We will continue to provide updated assessments of the earthquake damage on the company through our website: www.renesas.com.
Renesas Electronics asks for your kind understanding and support as the company and its employees work to reinstate production at the affected regions.
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