TOKYO With the goal of restoring profits this year, NEC Electronics started its first quarter with 13 percent increase in sales and halved its operating loss year on year.
NEC Electronics said sales totaled ¥165 billion ($561 million), a ¥19 billion increase from the year before. Operating losses totaled ¥5.8 billion ($50 million), a ¥4 billion ($35 million) decline from last year.
"Our business is improving, but it is not yet a strong recovery," said Hiroshi Sato, executive vice president and CFO of the semiconductor company.
The NEC unit said it expects its system-on-chip (SoC) platform revenues to grow by nearly 20 percent, while other MCU and discrete platforms grow at a rate of a few percent. The key driver in the SoC sector will be the its graphics chip for Nintendo's new game box Wii, which is scheduled to be introduced in September.
NEC Electronics plans to increase the capacity of Yamagata fab, its only 300-mm wafer fab, from 6,000 to 11,000 wafers a month. About 70 percent of its capacity will be devoted to the graphics chip, according to Sato.