Japanese chip maker Renesas Electronics today reported a 115% increase in operating profit between January and June compared to the same period last year. Growth has been recorded as the company is recovering from a devastating fire at its main plant. Renesas had an operating profit of $ 600 million in six months. It is noteworthy that product sales increased by 22%.
Renesas is a key chip supplier to Japanese automakers including Toyota Motor and Honda Motor. The automakers were seriously hampered by the fire that damaged the Renesas plant in Naka, north of Tokyo, on March 19.
The work of the enterprise resumed on April 17, but it returned to its previous productivity only at the beginning of this month. Renesas CEO Hidetoshi Shibata said production is now “1.7 times the level before the fire.” However, there is a shortage of materials required at the stage of packing crystals into cases.
The company expects to compensate for the lost production volumes due to the fire by the end of the year. However, automakers, which have cut their production this year due to a chip shortage, will try to catch up next year, which will keep the increased demand for chips. Shibata believes that demand will only come into equilibrium with supply by the middle of next year.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
