Renesas Electronics Chief Executive Hidetoshi Shibata said the current shortage of chips is bound to continue until the middle of next year.

The picture shows the Renesas plant engineer.

(Associated Press)

[Financial Channel/Comprehensive Report] Hidetoshi Shibata, the chief executive of Renesas Electronics, an automotive semiconductor manufacturer, said that the current shortage of chips is bound to continue until the middle of next year.

The problem, he said, is not a shortage of key primary semiconductors, but a lack of minor chips for peripherals.

People may be surprised by the shortage of secondary chips, and it will take time for demand to ease, Shibata said.

Renesas is one of the world's top 3 automotive chip makers, alongside NXP Semiconductors of the Netherlands and Infineon of Germany.

Shibata and others in the industry expect chip shortages to ease around the end of this year, but expect sporadic shortages to continue into the middle of next year.

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Renesas, which was founded in 2002 and merged with Hitachi and Mitsubishi's microchip divisions, posted record sales of 993.9 billion yen last year and an operating profit of 173.8 billion yen.

Estimated sales for the first nine months of this year were 1.1 trillion yen.

Shibata was responsible for a 130 billion yen investment in Renesas when he was an executive at a fund run by the Japanese government and the private sector.

Renesas became a major player in the embedded chip market, which is increasingly used in home appliances and automobiles.

Shibata said he hopes to develop Renesas into a major player in the embedded semiconductor market, distinguishing itself from competitors in the memory chip space dominated by South Korea and Taiwan.

Renesas' strength, he said, is that it has products and technologies that span the entire semiconductor chip field, not just memory chips.

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