Mere days after the world’s largest automotive microchip producer struggled to avert a production crisis due to their factory being disabled by the March 11th earthquake in Japan, the second largest producer of automotive microchips is now said to be abandoning their own factory in the area and is looking to add capacity at other plants.
Freescale Semiconductor Inc had prior plans to close their plant, located near the epicenter of the earthquake in Sendai, but decided to forgo repairing the damage sustained by the plant due to its severity. Since the target for the closing was December of this year, Freescale had already begun preparations for closing the plant, including stockpiling parts, but the disruption will still have significant repercussions for the industry. Freescale controls about 20 percent of the market for microchips. A Chandler, Arizona plant operated by Freescale will help the company fill demand in the interim.
[Source: Automotive News]