Macronix International Co Ltd (旺宏電子), which supplies memory chips to Japanese game console maker Nintendo Co, yesterday said net profits plunged 87 percent year-on-year in the last quarter after factory utilization fell to lower than the chipmaker’s previous estimate because of an unstable ramp at a new factory.
Factory utilization fell to 79 percent in the third quarter, missing the chipmaker’s target of 90 percent. That also brought down the operating profit margin to 7 percent, lower than the company’s forecast of between 8 percent and 12 percent.
Net income in the third quarter contracted to NT$359 million (US$11.94 million), down from NT$2.76 billion a year ago. On a quarterly basis, net profits decreased 30 percent from NT$515 million.
This quarter, revenues are expected to grow about 20 percent to between NT$7.8 billion and NT$8 billion from NT$6.5 billion, Macronix forecast.
“After six months in the doldrums in the game console market, we are now seeing encouraging signs,” Macronix chairman Miin Wu (吳敏求) said during a teleconference.
“Shipments of ROM chips will grow significantly this quarter from the third quarter,” he said.
ROM chips, used in game consoles, made up 90 percent of Macronix’s revenues last quarter.
However, flash memory chips would be flat this quarter, Wu said. NOR flash chips are non-volatile computer storage chips used in laptop computers, digital cameras and mobile phones.
Factory usage is expected to recover to 85 percent in the final quarter of the year, after a new 12-inch plant went back to its original schedule, the chipmaker said.
Operating profit margin is expected to improve to between 10 percent and 12 percent and gross margin should be flat or increase to 33 percent from 31 percent last quarter, the firm said.
Macronix’s new plant now produces 17,000 12-inch wafers a month, up from 10,000 wafers in the first half of this year.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB