Local memory chipmaker Macronix International Co (旺宏電子) is considering spending NT$160 billion (US$4.86 billion) on new advanced plants to cope with growing demand for its chips, a company executive said yesterday.
In contrast to local computer memory chipmakers plagued by the severe industrial slump, Macronix has enjoyed robust growth as its factories were almost fully utilized last quarter on rising demand for memory chips mainly used in communication devices and consumer electronics, such as Nintendo Co’s games consoles.
“We are evaluating different capacity expansion plans, including building our own plants, building plants jointly with strategic partners, or upgrading less advanced equipment purchased from other companies,” a Macronix company spokesman said by telephone.
He declined to reveal his name, adding that the investment aimed to satisfy customer demand.
Macronix said it had submitted an investment plan to the Central Taiwan Science Park Administration to lease a piece of land, confirming news reported by the Chinese-language Economic Daily News yesterday.
The Hsinchu-based chipmaker plans to invest NT$160 billion on building two new 12-inch plants before the end of the year at the earliest, the investment plan stated.
Macronix booked NT$21 billion in cash and cash equivalents as of the end of June. Macronix’s shareholders approved a proposal on June 10 to issue as many as 1.5 billion shares to finance the company’s expansion.
After reporting second quarter earnings of NT$980 million, its highest quarterly earning in nine months, Macronix said it expected the growth momentum to carry into the third quarter. Factory usage may be higher than 95 percent this quarter and shipments may rebound by 15 percent quarter-on-quarter, it said.
The company said revenues could increase by between 10 percent and 21 percent quarter-on-quarter in the July-to-September period.
Separately, ProMOS Technologies Inc (茂德科技), the nation’s third-biggest computer memory chipmaker, yesterday reported a smaller net loss of NT$10.98 billion for the first six months of the year, as prices plunged on oversupply. This compared with a loss of NT$13.67 billion in the first half of the year. Revenues contracted sharply to NT$3.96 billion in the first two quarters after a drastic reduction in output, from NT$17.27 billion a year ago.
In a separate press release, the nation’s biggest computer memory chipmaker, Nanya Technology Corp (南亞科技), declared an initial victory over a patent lawsuit with Tessera Technologies Inc.
Administrative Law Judge Theodore Essex of the US International Trade Commission found no violation in an action brought by Tessera against Nanya and other DRAM manufacturers, the Taiwanese chipmaker said yesterday.
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