Renesas forecasts bigger loss as chip sales slide
Renesas Electronics continues to feel the pressure from the market and is predicting a larger than expected loss for the year ending March 31, in a revised financial forecast.
The Japanese chip maker now forecasts a full year loss of Yen 176bn on smaller than previously expected semiconductor sales of Yen 711bn.
In Q3, already closed, Renesas reported Yen 46.6bn loss on semiconductor sales of Yen 177bn.
Sales from semiconductors for the three months ended December 31, 2012, were lower than expected.
Weakness in automotive and industrial
“This was mainly due to a decline in demand of semiconductors for automotive and industrial applications which were expected to recover the demand at certain level in the second half of the fiscal year,” said the company.
Renesas also saw semiconductor sales from consumer customers “influenced by production decrease at customers due to the prolonged downturn of the global economy.”
Production cuts in China
Production decrease of automotive, electronic and other equipment for China also brought further impact on demand of semiconductors through the period.
Renesas now expects sales from semiconductors for the three months ending March 31 to fall below its original expectation due to these same factors.
Sales from three product areas – MCUs, analogue and power devices and SoC solutions are expected to be lower than the previous forecasts respectively.