Mask ROM and NOR flash supplier Macronix International has announced its board of directors on April 27 approved a budget of NT$16.4 billion (US$522.83 million) to expand capacity at its newly-acquired 12-inch fab and to develop advanced technology, including US$4.4 billion for R&D expenditure.
Macronix said the expansion plan will be carried out between July 1, 2010 and December 31, 2011, with the funding coming from its cash on hand and bank loans.
Macronix recently acquired one of ProMOS Technologies' 12-inch fabs for NT$8.5 billion. Macronix said the fab would come on line in the first quarter of 2011, with monthly production initially estimated at 10,000 wafer starts.
Macronix ran at 94% utilization rate in the first quarter of 2010, when it generated higher-than-expected revenues, gross margin and operating margin.
Macronix reported net income of NT$1.63 billion on revenues of NT$6.57 billion for the first quarter, representing on-year growth of 34% in sales and 161% in profits. Gross margin and operating margin for the quarter reached 47% and 28%, respectively, beating the company's guidance.
Of Macronix' first-quarter revenues, NAND flash contributed 63% and ROM products made the remainder. Macronix said sales from its NAND flash business jumped 108% on year in the first quarter.
Macronix estimated revenues for the second quarter at NT$6.8-7 billion, a 3-6% rise from the prior quarter's levels. Gross margin will be between 47% and 48%, and operating margin 27-28%.