MegaChips Corp., the fabless chipmaker that supplies custom memory components to Nintendo Co., boosted its full-year net profit forecast by 28% after selling part of its stake in SiTime Corp.
The Osaka-based company now expects net income of ¥11.5 billion ($73.5 million) for the fiscal year ending March 2026, up from its previous projection of ¥9 billion, according to a filing on Friday. The revision stems from a ¥15 billion special gain booked after unloading 400,000 SiTime shares.
MegaChips left its operating projections untouched, with revenue still pegged at ¥42 billion ($268.5 million) and operating profit at ¥3 billion ($19.2 million). The company also raised its year-end dividend to ¥250 per share from ¥210, representing a ¥110 increase from the prior year’s payout.
The share sale marks another step in MegaChips’ gradual monetization of its SiTime investment. The Japanese firm acquired the Santa Clara-based timing chip specialist in 2014 for $200 million. SiTime has since gone public and its stock has surged this year on strong demand for precision timing solutions.
MegaChips remains heavily reliant on Nintendo, designing game software storage chips for the gaming giant’s consoles—a dependency the company acknowledges in its risk disclosures while pursuing diversification into industrial and telecommunications markets.
