Macronix International Co (旺宏電子), which makes memory chips used in Nintendo Co’s game consoles, has had a strong start to this year. It yesterday posted 36 percent annual growth in revenue for the past two months, undaunted by a global outbreak of COVID-19.
However, the Hsinchu-based chipmaker told investors that the epidemic has dimmed the business outlook for the current quarter, as it prior to the outbreak forecast that chip prices would rise.
In the first two months of the year, revenue expanded to NT$5.53 billion (US$184.09 million), compared with NT$4.07 billion in the same period last year, the company said in a statement, adding that on a monthly basis, revenue rose 0.8 percent from NT$2.76 billion.
Macronix said that it has not seen any major effects from the epidemic, as it makes chips in Taiwan, nor has it seen any virus-induced order cuts, as 5G infrastructure deployments continue worldwide.
Separately, the company said in a filing with the Taiwan Stock Exchange that its board of directors has approved a cash dividend of NT$1.2 per share, flat from last year, with the payout ratio climbing from 24 percent to 73 percent.
Earnings per share were NT$1.64 last year, down from NT$4.94 in 2018, it said.
The board also gave the go-ahead to raise funds through the issuance of 360 million new shares for existing shareholders in the form of global depository receipts or corporate bonds, the filing said.
Up to 180 million shares are to be offered via a private placement for local and overseas investors, it said.
The proceeds would be used to finance operations, the filing said.
Macronix plans to spend NT$8.7 billion on ramping up 3D NAND flash memory chip production at the end of this year, it said.
The chipmaker said in a separate filing that it plans to retire a less-advanced 6-inch fab and concentrate on making memory chips at 8-inch and 12-inch fabs.
The 6-inch fab contributed about 3.3 percent to Macronix’s revenue of NT$35 billion last year, it said.
A total of 330 jobs at the 6-inch fab would be moved to other facilities or units within the company, it added.
The plans are pending shareholders’ approval during an annual meeting scheduled for May 27.
In related news, memorychip maker Winbond Electronics Corp (華邦電子) yesterday posted a 3.57 percent yearly growth in revenue for the first two months, after revenue last month jumped 13.73 percent annually.
In January and February, revenue totaled NT$7.41 billion, up from NT$7.15 billion in the same period last year, it said.
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