Only bright spot for Renesas?
The Nintendo design win is a testament to the engineering expertise of
the former NEC Electronics’ team. NEC Electronics, before its merger
with Renesas, was responsible for the production of GPUs for Nintendo
GameCube and Wii.
The Wii U design win is one of the few bright spots for Renesas on an otherwise bleak horizon. The European electronics
industry is facing prolonged debt worries while the Chinese market continues to slow. China sales for Japanese car makers, a key Renesas clients, have been hit by a popular backlash against
Japanese products after a territorial dispute flared up again.
Q2 financial results that ended Sept. 30 already incorporated the sales
of GPUs for Nintendo’s Wii U. Compared to Q1, sales of SoCs in the Q2
jumped 20.6 percent to 55 billion yen from 34.4 billion yen. Most of
the increase is believed to come from GPUs for Nintendo.
Renesas Electronics Semiconductor Sales
Source: Renesas Electronics
Q2 semiconductor sales improved by 22%, driven by large custom projects like SoCs
said it continues to expect
sales of custom SoCs in the gaming segment to increase.
All bets are off, of course, if Wii U turns out to be a dud.