Japan Renesas Electronics will suspend chip production for two months due to slowing of Chinese demand
Mar 07, 2019| Japanese auto chip maker Renesas Electronics confirmed on Thursday that it plans to suspend production at its six plants in Japan for two months this year in response to a slowdown in demand for Chinese chips.
The company is considering suspending the front-end production of these factories for about one month in May and stopping production for another month in August to avoid excess chip inventory.
In addition, the company's three other factories in Japan, as well as the back-end production of four factories in China and Malaysia, may be suspended several times, one time each time.
A spokesman for Renesas Electronics said that demand for chips for automobiles, machine tools and air conditioners is expected to decline further this year.
Earlier, the media reported that Renesas Electronics may suspend production. As a result, the company's stock price on the Tokyo Stock Exchange fell 14.6%,