Macronix International Co (旺宏電子), which supplies memory chips for Japanese video game console maker Nintendo Co, yesterday posted a loss of NT$1.66 billion (US$49.2 million) last quarter as gross margin fell to its lowest in six quarters due to low utilization and sagging demand.
Last quarter’s figures brought Macronix’s total losses last year to NT$4.19 billion, an improvement compared with losses of NT$6.45 billion in 2014. The chipmaker lost NT$949 million in the third quarter last year.
In the final quarter last year, gross margin fell to 8 percent, compared with 14 percent the previous quarter after utilization fell from 90 percent to 70 percent.
“By lowering production, we aim to bring down our inventory to a level of NT$5 billion from NT$9 billion,” company president Lu Chih-yuan (盧志遠) said.
After a long term of incurring losses, the company is likely to get out of the woods this year thanks to revenue growth and reducing manufacturing equipment depreciation costs by 67 percent to about NT$2 billion from last year’s NT$6 billion, Lu said.
“We aim to return to profit in the second half of this year,” Lu said. “We are gaining market share this year on the back of improved costs and better technological capabilities, despite not seeing any encouraging signs [of a recovery] in the macroeconomic situation.”
Macronix would eke out a monthly profit when its monthly revenue reaches NT$2 billion, Lu said.
The company expects to become the world’s top NOR Flash memory chip supplier this year, replacing Cypress Semiconductor Corp.
NOR flash memory chips are Macronix’s biggest revenue source, accounting for 62 percent of last year’s revenue of NT$20.93 billion, company data showed.
The automotive and industrial sectors would show the strongest growth for NOR flash chips this year, Lu said.
Macronix counts the world’s top 10 car brands as its customers.
The automotive and industrial sectors made up 19 percent of Macronix’s revenue last quarter and would soon rise to more than 20 percent, Lu said.
Lu said the company’s major client is developing a new platform for its video game device this year, which could provide a boost to the company’s business.
Last year, sluggish sales of video game devices resulted in an annual decline of 45 percent in revenue for the company’s ROM chip, according to company financial statement.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, has decided to slow down its 3-nanometer chip production as Intel Corp, one of its major customers, plans to push back the launch of its new Meteor Lake tGPU chipsets to the end of next year, market researcher TrendForce Corp (集邦科技) said yesterday. That means Intel has canceled almost all of the 3-nanometer capacity booked for next year, with only a small amount of wafer input remaining for engineering verification, the Taipei-based researcher said in a report. Based on Intel’s original schedule, TSMC was to start producing the new chipsets in
DATA SHOW DOWNTURN: Manufacturing in Taiwan contracted as production and demand slumped, while growth in chip exports last month eased in South Korea World chip sales growth has decelerated for six straight months in another sign that the global economy is straining under the weight of rising interest rates and mounting geopolitical risks. Semiconductor sales rose 13.3 percent in June from a year earlier, down from 18 percent in May, data from the global peak industry body showed. The slowdown is the longest since the US-China trade dispute in 2018. The three-month moving average in chip sales has correlated with the global economy’s performance in the past few decades. The latest weakness comes as concern about a worldwide recession has prompted chipmakers such as Samsung
‘NO NEED TO WORRY’: The central bank governor said foreign selling on the TAIEX is normal for this time of year and that the nation has ample forex reserves Taiwan would emerge unscathed from China’s retaliatory actions to protest US House of Representatives Speaker Nancy Pelosi’s visit to Taipei, top monetary and financial officials said yesterday. Central bank Governor Yang Chin-long (楊金龍) shrugged off unease over potential instability in the foreign exchange and stock markets after foreign portfolio funds trimmed their holdings of local shares for two straight days amid Beijing’s threats of retaliation. “There is no need to worry,” Yang said on the sidelines of an event to celebrate the first anniversary of the opening of Central American Bank for Economic Integration’s (CABEI) Taipei office and the 30th anniversary of
Italy is close to clinching a deal initially worth US$5 billion with Intel Corp to build an advanced semiconductor packaging and assembly plant in the country, two sources briefed on discussions said yesterday. Intel’s investment in Italy is part of a wider plan announced by the US chipmaker earlier this year to invest US$88 billion in building capacity across Europe, which is striving to cut its reliance on Asian chip imports and ease a supply crunch that has curbed output in the region’s strategic auto sector. Asking not to be named due to the sensitivity of the matter, the sources said the