Nintendo Co. has added Sharp Corp. as an assembler of its Switch console, according to people directly involved in the matter, as it works to stabilize production and hedge against U.S.-China trade tensions.
The video game giant has struggled to produce enough units for most of this year as the hit game Animal Crossing: New Horizons and stuck-at-home consumers fueled demand. While the coronavirus outbreak hurt production early on, Nintendo President Shuntaro Furukawa said this month that output has returned to normal and the Switch is now made in Malaysia, in addition to existing China and Vietnam locations.
That Malaysia factory is owned by Sharp, said the people, who asked not to be identified because the information isn’t public. Nintendo’s main assembly partner, Foxconn Technology Co., a key unit of Foxconn Technology Group, owns a Sharp stake and helped connect the two Japanese companies, they added. Sharp continues to operate separately from its Taiwanese owner and its stock will be added to the 225-issues Nikkei average next week after a four-year absence.