Local memory chipmaker Macronix International Co (旺宏電子) yesterday reported its highest quarterly earnings in eight years, thanks to robust demand for memory chips used in consumer electronics, such as Nintendo Co’s game consoles.
Net income grew 7 percent to NT$2.27 billion (US$70 million) in the July to September quarter, compared with NT$2.12 billion earned a year ago, the highest since 2001. Gross margin also climbed to a seven-year high at 46 percent in the third quarter, Macronix said.
Macronix said, however, that the fourth quarter would be weaker. Revenues may fall by up to 21 percent to between NT$6.5 billion and NT$6.7 billion this quarter, from a peak of NT$8.28 billion last quarter.
“We are more conservative about game [console demand],” company chairman Miin Wu (吳敏求) told a media briefing.
Macronix supplies NOR flash memory chips to Kyoto-based Nintendo Co, which makes the Wii video game player.
“Compared with last year, there will be growth in the fourth quarter,” Wu said.
Macronix generated NT$5.59 billion in revenues in the fourth quarter of last year.
Gross margin is expected to fall to between 42 percent and 44 percent, from 46 percent in the third quarter, Macronix said.
Factory use would also decline to between 88 percent and 90 percent from 100 percent last quarter.
Macronix is planning to spend NT$1.4 billion on new equipment this year and is seeking potential partners to operate a 12-inch plant.
Macronix shares declined 2.65 percent to NT$16.55 yesterday.
Separately, DRAMeXchange Technology Inc (集邦科技), operator of Asia’s biggest spot market for semiconductors, confirmed yesterday that it sold a 10 percent stake to United Microelectronics Corp (UMC, 聯電), the world’s second-largest contract chipmaker.
In a press release, the research institute’s chairman, Liu Chung-laung (劉炯朗), said the 10 percent stake was sold to a UMC venture capital subsidiary, adding that the deal showed that the market intelligence company had gained increased attention.
“Intelligence and culture are both intangible assets, which can be brought to their full potential through incisive analysis from various perspectives,” Liu said.
Currently, the company commands four major research departments, providing market information and research in such fields as DRAM, NAND flash memory, PCs, display panels, light-emitting diodes (LED) and green energy.
The statement said 80 percent of DRAMeXchange’s revenue comes from analysis and strategic consulting it provides to leading global enterprises, such as Goldman Sachs, Morgan Stanley, Bloomberg, Intel Corp, Apple Inc and Samsung Electronics Co.
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