Macronix International Co (旺宏), the world’s biggest supplier of NOR flash memory chips, yesterday said it did not expect the memorychip industry to pick up significantly in the first half of next year as a weak global economy — China in particular — and rising inflation have dampened consumers’ appetite for electronics.
In Europe, the economy is battling high inflation caused by Russia’s war in Ukraine, while the US-China technology dispute has dealt a blow to China’s manufacturing sector and consumer spending, Macronix said.
As the global economic recovery remains in limbo, it would take much longer to see a dramatic reduction in the supply chain’s excess inventory, caused by a boom in market demand two years ago, Macronix chairman and CEO Miin Wu (吳敏求) said.
Photo: Ritchie B. Tongo, EPA-EFE
The company has seen a dip in revenue contributions from China due to weak demand, Wu said, adding that some Taiwanese manufacturers have also allocated capacity away from China.
“I just cannot find any reason to convince myself that next year will be a better year,” Wu said. “There could be a chance of a recovery in the second half of next year, if there is any improvement at all.”
Wu said he expects a lukewarm recovery in the first half of next year, and that NOR flash memory chips used in vehicles, and industrial and medical devices would be major pillars supporting the business.
“The automotive, industrial and medical segments are relatively stable, when half of our businesses are declining,” Wu said, adding that vehicles nowadays are equipped with a growing number of microcontrollers, which use NOR flash memory chips.
NOR flash memory chips made up about 46 percent of the company’s revenue in the second quarter, Macronix said.
The company reported a net profit of NT$71 million (US$2.2 million) in the second quarter, following a net loss of NT$355 million in the first quarter.
Commenting on China’s advancements in semiconductor manufacturing, Wu said Huawei Technologies Co (華為) has demonstrated to the world that it is capable of making advanced application processors without access to US technology, as its latest Mate 60 Pro smartphone is equipped with a 7-nanometer processor.
High costs and an unsatisfactory yield would not be an issue given the company’s support from the Chinese government, he said.
However, Huawei still lags far behind global chipmakers and it would take up to 20 years to catch up, Wu said, adding that developing semiconductor equipment might be the key to help it advance its technology faster.
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