Nintendo Puts in Dolphin Chip Order

NEC, the largest maker of chips in Japan, announced on Monday that it has received a 300 billion yen (US$2.86 billion) order to supply graphics and memory semiconductors for Nintendo's next-generation console, code-named the Dolphin.

Reuters reports that NEC will invest 80 billion yen ($760 million) to build a plant in Kyushu, in southern Japan, to produce 0.13-micron chips (although the initial batch of chips that NEC will supply to Nintendo will be produced on a 0.18-micron process).

Construction of the new plant will begin next month, and chip production will begin in August 2000. NEC senior vice president Kanji Sugihara told reporters at a press conference that "All the chips made at the new plant will probably be sold to Nintendo after it launches its new game machine." The new plant will deliver 10,000 eight-inch chip wafers per month.

Nintendo's DVD-based Dolphin hardware is currently slated for a worldwide holiday 2000 release.