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Sony officially buys Wii U DRAM manufacturing plant for ¥7.51 billion

Friday, 31st January 2014 10:29 GMT By Dave Cook

Sony has finalised its acquisition of Japanese manufacturing plant Renesas Electronics, the same site that produces the Wii U’s DRAM chip. While Sony has issued a press release on the matter, Nintendo is yet to discuss it.

We first reported on the rumoured ¥7 billion take-over earlier in the week. Just hit the link for all of the details.

Now, Sony has purchased the plant, located in Tsuruoka, Yamagata prefecture. The site was acquired for ¥7.51 billion, which is around $73 million, and gives Sony ownership of the whole business as of March 31.

The plant was due to be closed to make way for a major restructuring effort, but Sony has vowed to oversee the site and even absorb some of Renesas’ staff into its ranks. Sony will use the location to open its new Yamagata Technology Center, geared primarily towards the production of CMOS smartphone sensors, with a promise to invest a further ¥27.5 billion into bolstering production.

Sony’s official statement reads, “After the Asset Transfer, the system LSIs and others produced at the Tsuruoka Factory will be produced there for Renesas Electronics by SCK (Sony Semiconductor Corporation) on a contract basis for a certain period of time as agreed by Renesas Electronics and Sony.

“After expiration of that period, Renesas Electronics will shift the production of the system LSIs to its Naka Factory or discontinue production, as Renesas Electronics previously announced to its customers.”

We’ll update you if Nintendo steps forward with a statement, as it’s currently unclear where this leaves its DRAM chip production.

Via DualShockers.

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11 Comments

  1. OmegaSlayer

    Well, Nintendo doesn’t need it anymore :p

    #1 9 months ago
  2. The_Red

    Wait, what? I may be totally off but does this mean Nintendo has halted the production of new Wii U consoles?

    #2 9 months ago
  3. Digital Bamboo

    @2 More like Sony now has Nintendo by the balls, as far as their DRAM chips go.

    If they continue to manufacture them, then Nintendo will have to pay Sony every time they want to make a new Wii U, but if Sony stops production of Nintendo’s chip, then they will have to find someplace else to make it.

    This is so corporatly devious, its almost beautiful.

    Hope Nintendo figures out something fast.

    #3 9 months ago
  4. Dragon

    @2,3,
    No. You have got it wrong. Renesas is just a hardware contractor. Sony needs to increase its capacity to build CMOS, as they are industry leaders in that field. The plant was going to be shut down anyway since it wasn’t running at full capacity, but now Sony has bought it.
    Nintendo can easily go to another hardware contractor to make the DRAM chips, no big issue. They also have supposedly large pile to go through for a while.

    #4 9 months ago
  5. ruckus

    Sony executive buys coffee in coffee shop no longer used by Nintendo.
    We’ll update you if Nintendo steps forward with a statement, as it’s currently unclear where this leaves its want for coffee.

    #5 9 months ago
  6. Luciferous

    The plant was going to be closed anyway, what Sony have done is saved the location and some of the workforce, good on Sony.

    #6 9 months ago
  7. Cobra951

    @The_Red

    No, but it does absolutely mean that Nintendo needs that facility less than 7.51 billion yen (or similar competing bid, if the plant didn’t belong to Nintendo). As I said when this story was a rumor, make of that what you will.

    #7 9 months ago
  8. schnide

    @Digital Bamboo

    Yoda speaks: “Analyst, you are not!”

    Do you really think Nintendo would be that stupid if it were true? The plant was due to be closed.

    #8 9 months ago
  9. RussellGorall

    @Dragon Actually, you have it more wrong than they do.

    #9 9 months ago
  10. Digital Bamboo

    @8 Quite right, you are.

    If I were an analyst, I’d be getting paid to be wrong.

    #10 9 months ago
  11. schnide

    @Digital Bamboo

    Whereas now you’re just doing it for free :)

    #11 9 months ago

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