Macronix International is seeing a slowdown in orders for its mask ROM products, and holds an uncertain outlook due to low order visibility, according to company chairman Miin Wu.
Demand for ROM chips has also been affected by slow sales of games consoles in Japan, which has been impacted by the recent earthquake, said Wu. Seasonality is the other contributing factor, Wu added.
In contrast, sales of NOR flash memory are expected to perform relatively briskly in the second quarter, Wu said, citing rising demand for new applications.
Macronix' mask ROM sales grew 28% sequentially in the first quarter, but unit shipments decreased 8% compared to levels in the fourth quarter of 2010. Meanwhile, sales of its flash products increased 19% on quarter with a 32% rise in unit shipments.
Macronix' sales ratio between ROM, flash and other products reached 41:51:8 in the first quarter of 2011, compared to .39:51:10 in the prior quarter.
Macronix said it is shipping more ROM products made using 65nm process technology. The node accounted for 75% of its total ROM sales in the first quarter, compared to 36% in fourth-quarter 2010. Meanwhile, 0.11-micron remained Macronix' major production node for NOR chips in the first quarter. The company is set to start mass producing flash products using 75nm process technology in the second quarter.
Macronix reported NT$6.6 billion (US$229 million) in revenues for the first quarter of 2011. Gross margin and operating margin for the quarter reached 42% and 19%, respectively. The results all met its guidance issued in January.
Looking forward, Macronix estimated second-quarter revenues at NT$6.4-6.8 billion. Gross margin and operating margin will both slide to 34-36% and 10-12%, respectively.