Local memory chipmaker Macronix International Co (旺宏電子) yesterday raised its outlook for the current quarter, saying revenues could grow 40 percent quarter-on-quarter as demand for flash memory chips used in TVs and notebook computers rebounded at a faster-than-expected rate.
The announcement came after Macronix reported that sales rose 14 percent year-on-year, or 35.9 percent month-on-month, to NT$2.84 billion (US$86.7 million) last month.
“It looks like we’ll see substantial growth in September sales. The third-quarter business will be better than we initially thought,” company chairman Miin Wu (吳敏求) told a press conference yesterday.
“The main growth area will come from NOR flash memory. We are seeing rising demand, which could lead to supply constraint as supplies were reduced after major supplier Spansion Inc stopped delivering certain low-density chips,” Wu said.
Macronix intends to raise prices for certain chips, he said.
In the third quarter, revenues could jump between 37 percent and 41 percent quarter-on-quarter, rather than the between 10 percent and 15 percent growth the company estimated two months ago, Wu said.
NOR flash memory chips accounted for more than half of the chipmaker’s revenues of NT$5.77 billion last quarter.
“We are surprised about [rising demand] from TVs … Notebooks were also an important [driver],” Wu said, adding that Macronix was supplying the world’s top-three TV makers with flash memory chips used in TVs.
Shipments are expected to expand by 32 percent this quarter from last quarter, higher than the company’s previous estimate of 15 percent growth, the chipmaker said.
To cope with stronger-than-expected recovery, Wu said: “We plan to build a 12-inch plant to meet customer demand … Macronix hopes to [reach a final decision] as soon as possible, but it will depend on negotiations with our potential partner.”
Macronix intends to invest between NT$10 billion and NT$20 billion in the initial phase on a cost-efficient plant, which it hopes will start operations in 2011, Wu said.
At present, Macronix operates a 6-inch plant and an 8-inch plant.
Riding on the growing demand for its chips, Macronix could more than double its share in the global NOR flash memory market to 10 percent by the end of this year, from 4 percent early this year, Wu said.
Shares of Macronix rose 3.16 percent to NT$17.95 yesterday, outperforming the benchmark TAIEX, which gained 1.24 percent.
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