NEC Electronics, Japan's third-largest chipmaker, today posted a first-half profit well above forecast and more than double the amount earned a year earlier, due to strong demand for its system chips.
For the April-September half, NEC Electronics hauled in a net profit of 12.1 billion yen or 110.35 yen per share, up from 5.1 billon or 51.46 yen a share in the same period last year.
Operating profit increased 77.5 per cent to 25.2 billion yen, even as sales slipped 4.9 per cent to 348 billion yen.
The chipmaker had forecast a net profit of 10 billion yen and sales of 340 billion yen.
NEC Electronics is 70 per cent owned by Japanese electronics giant NEC which in July raised $1.3 billion through an initial public offering of shares in the chipmaking subsidiary. The IPO was the largest in the world this year.
The shares, initially offered to the public at 4,200 yen per share, have since more than doubled in value amid a brightening outlook for the company, which specializes in making system LSI chips, which combine multiple functions in one unit.
Last month NEC Electronics said it planned to expand its production capacity by up to 30 per cent over the next two years because of growing demand for the high-end chips, which are used in a wide range of electronic devices from DVD recorders to set-top boxes.
AFP