Renesas halts work at Beijing plant due to Covid spread

TOKYO (Reuters) - Japanese chip maker Renesas Electronics Corp (6723.T) suspended work at its Beijing plant on Friday because of Covid infections, and will keep the facility shut for several days, a spokesperson said on Monday.

Renesas, the world s leading maker of automobile chips, said the factory mostly produces semiconductors used in industrial machinery and home appliances and that it would make up for the lost output with existing stock.

There won t be much impact for a stoppage that lasts only several days," the spokesperson said.

A recent surge in Covid cases in China has hit major urban centres throughout the nation.

Renesas is closely watched by investors because it makes around a third of all the microcontroller chips used by the world s carmakers. The industry has already faced pandemic-related shortages that have forced manufacturers to curtail some production.