While car enthusiasts the world over are worried about assembly plant closures following the earthquake that ravaged Japan, many are still unaware of the significant role played by companies working at the start of the colossal logistical chain that results in the production of a vehicle.
Did you know that a single vehicle uses from 30 to over 100 chips to control things like the parking brake, stereo, power steering and safety systems such as stability control? Development of these components is extremely complex, and only a handful of companies are able to meet the demands of the world’s automotive giants.
Renesas Electronics is such a company, cornering 41% of the market. Unfortunately, one of the Japanese manufacturers responsible for 25% of Renesas’s total production has fallen victim to Mother Nature and won’t be operational again until July at the earliest. Deliveries have been delayed by several months, and a major shortage could force automakers to halt production altogether.
Renesas Electronics has of course transferred production activities to two other plants, but the process could take up to two months.
Normally, companies like Toyota, Nissan, GM and Ford can turn to other suppliers to fill their immediate needs, but that’s not necessarily the case when it comes to electronic parts.
Programming language, voltage and even the number of contact rods are specific to certain vehicles, and finding quick solutions can be a headache.
In addition, competitors like Freescale Semiconductor, Infineon Technologies and Texas Instruments are hard pressed to increase their production capacity on short notice, as they’re already using all available resources to maintain their current manufacturing rate.
And this is just a simple link in the incredible logistical chain behind each of our cars. Renesas Electronics is unfortunately one example among many that illustrates the vulnerability of automakers to their suppliers and, on a larger scale, of the human race to the environment.
Source : Automotive News
Did you know that a single vehicle uses from 30 to over 100 chips to control things like the parking brake, stereo, power steering and safety systems such as stability control? Development of these components is extremely complex, and only a handful of companies are able to meet the demands of the world’s automotive giants.
Renesas Electronics is such a company, cornering 41% of the market. Unfortunately, one of the Japanese manufacturers responsible for 25% of Renesas’s total production has fallen victim to Mother Nature and won’t be operational again until July at the earliest. Deliveries have been delayed by several months, and a major shortage could force automakers to halt production altogether.
Renesas Electronics has of course transferred production activities to two other plants, but the process could take up to two months.
Normally, companies like Toyota, Nissan, GM and Ford can turn to other suppliers to fill their immediate needs, but that’s not necessarily the case when it comes to electronic parts.
Programming language, voltage and even the number of contact rods are specific to certain vehicles, and finding quick solutions can be a headache.
In addition, competitors like Freescale Semiconductor, Infineon Technologies and Texas Instruments are hard pressed to increase their production capacity on short notice, as they’re already using all available resources to maintain their current manufacturing rate.
And this is just a simple link in the incredible logistical chain behind each of our cars. Renesas Electronics is unfortunately one example among many that illustrates the vulnerability of automakers to their suppliers and, on a larger scale, of the human race to the environment.
Source : Automotive News