Renesas' third-quarter revenue increased slightly by 2.8%, warning of a decline in IoT market demand in the next quarter

Renesas Electronics recently announced its financial report for the quarter ended September 30, 2022, with revenue of 387.6 billion yen and operating profit of 117.9 billion yen, a year-on-year increase of 50% and a quarter-on-quarter increase of 2.8%.

Looking ahead to next-quarter results, Renesas CEO Hidetoshi Shibata said that "weakness in PCs and mobile devices is now spreading to more peripheral markets", and while demand in the automotive electronics business remains strong, the Internet of Things (IoT) chip business is weakening, and the company has been expanding its IoT chip business over the past few years through acquisitions of Dialog Semiconductor and external targets including Reality Analytics and Indian 4D radar chip firm Steradian Semiconductor.

Shibata expects inventories of the company's traditional products to temporarily increase in the fourth quarter of this year and the first quarter of next year as demand slows.

The cost of electricity for fabs is also a growing problem, said Shuhei Shinkai, chief financial officer at Renesas Electronics. "For production costs, we expect electricity costs to continue to increase."