Two of the largest Japanese semiconductor companies have turned in lower profit figures for the six-months period to 30 September.
Mitsubishi Electric and Hitachi both blamed the slump in the prices of memory chips as the reason for the poor results.
Hitachi turned in interim pre-tax profits of 33.6 billion yen on a turnover of 4.08 trillion, a 42 per cent drop in profitability, while Mitsubishi reported profits of 6.30 billion on turnover of 1.7 trillion yen
The drop in chip prices coincided with an increase in production capacity, Mitsubishi said. It has plants in Germany, the US and in Japan. Hitachi, while agreeing the slump was a problem, also said that low interest rates in Japan contributed to the fall.
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