Taiwan-based chipmaker Macronix International expects to enjoy a particularly strong first quarter of 2021, judging from robust demand for all its product lines including ROM, NOR and NAND flash memory.

Macronix also expressed optimism about its operations in 2021. As a NOR flash memory specialist, the company expects its supply to stay tight throughout the year. Meanwhile, SLC NAND flash demand has been rising for consumer and communication products, said company president CY Lu.

Besides, Macronix' ROM business outlook this year remains promising thanks to robust demand for games consoles, Lu indicated.

Macronix reported net profits surged 77% to NT$5.33 billion (US$190 million) in 2020, when revenues increased 14% on year to NT$39.8 billion. EPS came to NT$2.90.

Macronix saw its gross margin climb 6.2pp on year to 33.7% in 2020, thanks to the company's increased focus on automotive, industrial, and niche-market applications.

Macronix posted revenues of NT$10.16 billion in the fourth quarter of 2020, down 7% sequentially but up 6% on year, while gross margin fell 3.5pp on quarter but grew 6.2pp from a year earlier to 32.4%.

Macronix saw sales of its ROM products account for 45% of revenues during the fourth quarter, followed by sales of its NOR flash chips with 37%. NAND flash products and its foundry business group (FBG) each accounted for 9% of the total fourth-quarter revenues.

Of Macronix' NOR flash revenues, sales generated from the automotive and industrial sectors accounted for 17% and 13%, respectively, in the fourth quarter. NOR flash products accounted for 42% of Macronix' total revenues in 2020, followed by ROM products with 41%, NAND flash with 10% and FBG with 7%.

In addition, Macronix set its capex target of NT$3 billion for 2021, when the company will expand capacity through technology upgrades.

Macronix president CY Lu
Photo: Michael Lee, Digitimes, January 2021