While the demands to produce memory chips for Huawei greatly decreased, Macronix International Co has posted an increase in their revenue during the first half of the year. This is because of the increase in demand for ROM memory chips for the Nintendo gaming console.
Not Affected by Huawei Ban
“Fortunately, we produce very few memory chips for mobile phones,” Macronix chairman Miin Wu told reporters during the company’s annual general meeting as reported by Taipei Times. Obviously, Wu is referring to Huawei for which his company neither produces NOR flash memory chips.
And while Huawei is one of their top three clients, the effect is minimal. The reason – the profits from Huawei NOR flash memory chips represents less than 10 percent of the company’s revenue.
“As uncertainty is high, clients tend to place short-term orders, rather than long-term ones. That makes it difficult for us to make forecasts,” Wu said.
Nintendo Gaming Console Production Increase Seen
But while the revenue from Huawei decreases, it doesn’t even give a dent to the Macronix’s revenue. That is due to Nintendo’s increase in its memory chip demands for its handheld gaming console. “[Nintendo] has exceeded our expectations in the past two months,” Wu said adding that the “demand is better than we thought.”
With strong demand from Nintendo’s ROM memory chips, Macronix’s revenue went up to NT$2.72 billion (US$86.27 million) last month. This represents a total of 30 percent from April.
“That is very unusual, as the first and second quarters are usually slow seasons,” Wu added.
Wu also revealed that Macronix plans to mass produce advanced 19-nanometer NAND flash memory chips in the fourth quarter of this year. His company has reportedly allocated NT$14.2 billion to build new facilities and buy new equipment for the 19-nanometer technology.
We’ll bring you more details on Nintendo’s future plans on their gaming console so stay tuned.