Japan-based Renesas Electronics has halted production at its chip plant in Beijing due to the growing COVID case number at the site. According to media reports, the company has suspended production since the evening of December 16.
Nikkei and Yomiuri reported that the increasing COVID cases at Renesas' Beijing plant had impacted the production lines. The company has decided to halt production for several days to help its employees stay safe. The suspension is subject to change based on the pandemic and the government's order.
Renesas said the suspension has not struck the chip supply because the inventory level at the plant and distributors remain solid.
The Beijing plant was once halted from January to February 2022. It produces industrial-use chips for customers in and outside China. The workforce headcount is about 1,000.
COVID cases in Bejing and Shanghai have surged since November 2022. According to media reports in China, the case number will peak within a month. In addition, the upcoming Chinese New Year, which starts on January 21, could also worsen the outbreak.
The pandemic in China has impacted other Japan-headquartered businesses in China. Many employees have been working from home since.
Some Japanese factories in Dalian also have seen the COVID case number growing, which reduces capacity utilization.