Macronix International has entered the known-good-die (KGD) market, and has started shipping KGDs to a couple of Taiwan-based and foreign clients for WLAN, handset, and flash driver applications, according to company chairman Miin Wu.

While KGD shipments remain low at present, Wu said the volume will ramp up significantly in 2009-2010.

Macronix is the second major integrated device manufacturer (IDM) in Taiwan to enter the KGD market, following Etron Technology, whose chairman Nicky Lu has often stressed the growing importance of the KGD market.

Wu explained that KGDs can help shrink product sizes and reduce the number of times needed for packaging, which lowers the cost of production.

Macronix reported that second-quarter revenues increased 12% on-year to NT$5.86 billion (US$177.70 million), despite pricing pressure. Gross profit was NT$1.901 billion, a 39% increase from NT$1.37 billion in the second quarter of 2006. Gross margin was 32.4%, compared to 26.2% in second quarter 2006.

Operating income doubled from NT$241 million in second quarter 2006 to NT$505 million. Net income reached NT$802 million, more than doubled the NT$232 in the second quarter of 2006.

Sales in the second quarter from ROM revenue accounted for 45% of net sales, an increase of 45% on-year, and 11% sequentially, with strong demand in game cartridge sales being the primary driver of our year-over-year sales, according to the company.

Flash products accounted for 42% of net sales, an increase of 10% on-year and a sequential decrease of 18%. The unit shipments of flash increased 50% on-year and 26% sequentially.

Sales in SMS (strategic manufacturing services) products accounted for 13% of net sales, an increase of 2% year-over-year, and a sequential increase of 26%.

The products made by 0.15 micron, 0.13 micron and 0.10 micron of the advanced process technology collectively accounted for 72% of net sales revenue for the second quarter of 2007. Capacity utilization rate decreased to 94% from 102% on-year, but increased from 92% in the previous quarter due to the expansion of production capacity in Fab 2 during the second quarter of 2007.

Wu said the company expects ROM products at 100nm will account for more than 50% of Macronix's second-half ROM production, amid strong demand from the game console and consumer electronics markets. He said the monthly capacity for 100nm ROM will increase to 30,000 wafers during the third quarter. Wu revealed that volume production for 75nm 2Gb products will start in the fourth quarter.

The NOR flash capacity for the second half of the year has been fully booked by major clients, Wu said. While capacity will remain tight, flash shipments will stay flat compared to the second quarter, he added.

By: DocMemory
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