JVCKenwood Disclosure on Chip Fire

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Following Pioneer’s warning of potential parts shortages due to a supplier’s plant fire, JVCKenwood Corporation this week issued a public statement on the matter.

JVCKenwood said it expects a delay in acquiring some components as a result of “a fire that occurred at a supplier’s factory in late October.” As a result, it expects “to experience delays in some of our production in the Automotive Sector and the Public Service Sector.”

It added, “While the details of impact are currently under investigation, the impact on the Company’s financial results for the current fiscal year is expected to be minor.”

For its part, Pioneer said earlier that it is looking for new chip sources and that it expects “some component supply shortages in the short term.” Pioneer also named 21 of its radios that use AKM chips.

While Pioneer specifically named the factory in question as the AKM chip plant in Nobeoka City, Japan, JVCKenwood did not identify the  plant except to date the plant’s fire as the end of October.  The AKM fire began October 30 and burned for three days, before coming under control.

Several other car audio companies have been impacted by the fire but wished not to make a statement at this time.  Many industry members believe the fire at the AKM plant, which makes such products as digital-to-analog converters (DACs) and digital signal processors (DSPs),  could result in more head unit delays next year, on top of the shortages already in effect due to COVID-19.


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1 Comment

  1. Audison and Hertz are very fortunate that we do not have any DSP units or Marine source units that are affected by the DSP chip factory fire.

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