SAN JOSE, Calif. Japan's NEC Electronics Corp. is expected to miss its operating profit forecast for the year by 40 per cent due to the slowdown in the IC industry.
According to the Nihon Keizai Shimbun business daily, NEC Electronics (Tokyo) is expected to post a group operating profit of about 30 billion yen ($290.4 million) for the current business year, compared to its revised forecast in October of a 50 billion yen (US$483.9 million).
The chip maker originally estimated its operating profit to come to 65 billion yen ($629.4 million) for the year. The Japanese chip maker lowered its forecast due to sluggish demand.
Fujitsu, Matsushita and NEC in October posted strong results for the first half of 2004, but the Japanese electronics giants lowered their respective outlooks due to a slowdown in semiconductors and other products (see Oct. 28 story).
Separately, NEC will suspend fab lines at its two factories in Kumamoto Prefecture, southern Japan, and Shiga Prefecture, central Japan, for about one week during the holiday period, which is two to three days more than earlier planned, according to reports.