Nintendo supplier withdraws Outlook due to uncertainty about chips

Hosiden Corp., a major assembler of Nintendo Co.’s Switch console, withdrew its fiscal year sales forecast due to difficulties in purchasing electronic components.

Hosiden Corp., a major assembler of Nintendo Co.’s Switch console, withdrew its fiscal year sales forecast due to difficulties in purchasing electronic components.

The Osaka-based company said uncertainty about its equity and the ability of its customers to get hold of enough chips forced it to withdraw its previous outlook in a filing with the Tokyo Stock Exchange Thursday. More than half of Hosiden’s revenue comes from its Nintendo operations, according to company documents, suggesting Switch console production may be behind schedule.

Nintendo will announce profit on Wednesday. The company has said it plans to sell 21 million Switch units in the fiscal year ending in March. A company representative declined to comment.

Shares of Hosiden rose as much as 14% in Tokyo on Friday after the assembler reported better-than-expected gains for the April-June period and revised its forecast for the half-year ending September. The weakened yen boosted those results, but currency volatility and uncertainty over semiconductor purchases made it unfeasible to provide a reasonable full-year forecast, the company said.

Hosiden’s latest outlook shows that production is likely to decline in the July-September quarter of April-June, which should be the other way around for the entertainment industry, which tends to ramp up production in the run-up to the holiday season. season,” said Toyo Securities analyst Hideki Yasuda. “This suggests that the client’s annual fiscal plan is becoming increasingly difficult to achieve.

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