UPDATE 1-Japan's Renesas says to restore chip supply by end-October

Wed May 18, 2011 6:20am EDT

* Net loss blamed on quake, restructuring

* Expects to provide earnings guidance in July

* Renesas shares rise 5.8 pct to 744 yen on Wednesday

* Chip supplies to run short from June-president

* Silicon wafer supplies will last through Sept-president (Adds details)

By Kentaro Hamada

TOKYO, May 18 (Reuters) - Japan's Renesas Electronics Corp , a major supplier of semiconductor chips to the auto industry, said on Wednesday it would restore supply to pre-quake levels by the end of October, after the disaster damaged one of its main plants.

But supplies of chips from the company's Naka plant, which produces microcontroller chips used in cars, will run very low from June, Renesas president Yasushi Akao told reporters on Wednesday.

Shortages of parts and materials have forced the world's carmakers to cut output since the devastating March 11 quake, but Honda and Nissan said this week they were accelerating efforts to resume full production. [ID:nL4E7GH057]

The devastating March 11 quake forced silicon wafer market leader Shin-Etsu Chemical to suspend production at its largest wafer plant, sparking concerns about supply. Akao said that Renesas had secured sufficient supplies of the chip substrate to last until the end of September.

Renesas posted a 115 billion yen ($1.4 billion) annual net loss for the year to March 2011 and declined to provide a forecast for the current financial year, amid uncertainty about the impact of the earthquake.

The company said it expected to provide earnings guidance for the year to March 2012 in July. The average of six forecasts given by analysts polled by Thomson Reuters I/B/E/S in the last 60 days is for a loss of 57.3 billion yen.

The results for the year ended March 2011 were in line with a revised forecast announced on May 10, which blamed the losses on restructuring costs and the effects of the earthquake.

The losses cannot be compared directly with last year's results, which were announced ahead of the merger of Renesas Technology Corp and NEC Electronics Corp. The merged corporation would have suffered a 137.8 billion yen net loss in the year to March 2010, Renesas said.

Shares of Renesas closed up 5.8 percent at 744 yen prior to the announcement. ($1 = 81.425 Japanese Yen) (Additional reporting by Isabel Reynolds; Editing by Joseph Radford)

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