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Automotive chip maker says it's nearly recovered from blaze

Chip Shortage Auto Prices
Posted at 11:56 AM, Jun 01, 2021
and last updated 2021-06-01 11:56:10-04

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.