Macronix profits triple on tight supply

SELLER’S MARKET:The chipmaker sees continued robust demand as the industry enters its peak season while supply constraints remain as big players exit the market

Taipei Times
Date: Jul 25, 2017
By: Lisa Wang / Staff reporter

Macronix International Co (旺宏電子), which supplies read-only memory (ROM) chips to Japan’s Nintendo Co, yesterday said that its net profit more than tripled sequentially to NT$616 million (US$20.29 million) last quarter, as a persistent supply crunch boosted prices and factory utilization.

Last quarter was the fourth straight profitable quarter for the chipmaker. It made NT$203 million in the first quarter of this year, while it lost NT$689 million in the second quarter of last year on heavy depreciation costs.

Gross margin climbed to 34 percent last quarter from 27 percent in the first quarter, hitting the highest level in about five years, the Hsinchu-based memorychip manufacturer said.

Macronix expects its growth momentum to further pick up speed in the second half as the consumer electronics industry enters its peak season, which will only aggravate supply constraints.    [FULL  STORY]

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