Macronix International Co (旺宏電子), the world’s biggest NOR flash memory chipmaker, yesterday said that its net profit last quarter fell 18 percent from the previous quarter, while gross margin dipped due to a higher inventory write-off and increased shipments of lower-margin memory chips to Nintendo Co.
Net profit last quarter fell to NT$1.92 billion (US$62.04 million) from NT$2.33 billion in the third quarter of last year, with earnings per share of NT$1.05, down from NT$1.28 a quarter ago.
“The third-quarter net profit slightly lagged behind our expectations, as business from Nintendo was a bit lower” than expected, Macronix chairman and chief executive officer Miin Wu (吳敏求) told an investors’ teleconference.
Inventory, most of which were prepared for Nintendo for the holiday shopping season, last quarter spiked 20 percent to NT$17.16 billion from a quarter ago, the company’s financial statement showed.
Gross margin last quarter fell to 18 percent from 24 percent in the second quarter and from 20 percent in the third quarter of last year.
Macronix said it is in talks with Nintendo to digest the inventory.
The US-China trade dispute and the US sanction on China’s ZTE Corp (中興) have reduced NAND flash memory chip orders from China, the chipmaker said.
That has caused revenue to fall 4 percent year-on-year to NT$10.03 billion last quarter, it said.
“It is difficult to predict how the market will act, especially with the trade row between the US and China. It is impossible to know how the trade tension will play out,” Wu said.
Electronics assemblers have been seeing slowing production, as their clients are cautious about placing orders due to the trade dispute and a shortage of passive components, Wu said.
Most of the assemblers manufacture their products at Chinese plants before shipping them to the US, he said.
Despite unfavorable market conditions, Macronix expects prices for its high-density and high-quality NOR flash memory chips to remain stable this quarter and next year, given limited supply, Wu said.
Macronix expects its factory to be fully utilized this quarter.
The chipmaker said it plans to allocate NT$14.2 billion on new equipment next year to upgrade 36-nanometer technology to 19-nanometer technology to produce 19-nanometer single-level-cell NAND flash memory chips.
Part of the capital would be used to produce low-density embedded multimedia card NAND flash memory chips, and to finance the research and development of 3D NAND flash memory chips, the company said.
Contract chipmaker United Microelectronics Corp (UMC, 聯電) yesterday said it has signed a memorandum of understanding (MOU) with Polar Semiconductor LLC to collaborate on the production of 8-inch wafers in the US. The collaboration aims to strengthen 8-inch wafer manufacturing in the US amid Washington’s efforts to increase onshore manufacturing of semiconductors, contribute to supply chain resilience against shifting geopolitical dynamics, and ensure a secure domestic supply of power semiconductors critical to automotive, electric grids, robotic manufacturing and data centers, the companies said in a joint statement. Under the MOU, Polar and UMC will identify devices for Polar to manufacture at
TECH TITANS: Amazon’s latest chip joins Google in competing for the 90 percent market share held by Nvidia, which claims it is ‘a generation ahead of the industry’ Amazon Web Services (AWS) on Tuesday launched its in-house-built Trainium3 artificial intelligence (AI) chip, marking a significant push to compete with Nvidia Corp in the lucrative market for AI computing power. The move intensifies competition in the AI chip market, where Nvidia dominates with an estimated 80 to 90 percent market share for products used in training large language models that power the likes of ChatGPT. Google last week caused tremors in the industry when it was reported that Facebook-parent Meta Platforms Inc would employ Google AI chips in data centers, signaling new competition for Nvidia. This followed the release last month of
Two companies wholly owned by the daughter of the founder of Hon Hai Precision Industry Co (鴻海精密) on Monday reported to the Taiwan Stock Exchange that they would dispose of all of the Hon Hai shares they hold. In filings with the exchange, Hong Wei Investment Co (鋐維) said it would sell the 2.771 million Hon Hai shares it holds and Frontier Investment Corp (承鋒投資) said it would sell its 2.409 million Hon Hai shares from tomorrow until Jan. 3 next year. The two companies are wholly owned and chaired by Shirley Gou (郭曉玲), the eldest daughter of Hon Hai founder Terry
TARIFF TALKS: The US secretary of commerce is eyeing more than US$300 billion in investments and said Taiwan would train US workers, but Taipei has denied the latter US Secretary of Commerce Howard Lutnick said the US is expecting a large investment pledge from Taiwan in trade talks, while President William Lai (賴清德) listed areas that need improvement in order for projects to be completed. “We’re in the midst of discussions,” Lutnick said on Wednesday. “But the fact is, this administration’s goal is to bring semiconductor manufacturing to America.” Lai on Wednesday said Taiwan is supportive of US President Donald Trump’s goal of reindustrializing the US, including efforts to ramp up semiconductor production. Such a goal would require the US to reduce its reliance on Taiwan as a key source
RSS