With Nintendo's Switch reportedly to become available in China, Macronix International is expected to see its ROM chip shipments pick up later in 2019, according to industry sources.

The upcoming ramp-up of its shipments for Nintendo's Switch gaming consoles will help Macronix scale down ROM inventories that have been piled up since the fourth quarter of 2018, the sources indicated.

Robust ROM shipments, as well as stable prices for the chips, will be contributing positively to Macronix' performance in the second half of 2019, the sources said.

Macronix disclosed previously that the company's net inventory came to about NT$17.95 billion (US$584.4 million) as of the end of 2018, with ROM products accounting for 60% of the value.

Macronix saw ROM chip sales surge 33% on year to account for 31% of its total revenues in 2018, which grew 8% to a record high of NT$36.95 billion. The company generated net profits of NT$8.99 billion, up 63% on year, with EPS reaching NT$4.94.

At its most recent investors meeting, Macronix warned of a tough first-quarter 2019 citing mainly continued weakness in demand and prices for its flash products consisting of NOR and NAND chips.

Macronix is expected to detail its financial results for the first quarter of 2019 and provide a business outlook for the second quarter at its upcoming investors meeting scheduled for April 25.

With various media outlets reporting Tencent obtaining approval to sell the Nintendo Switch in China, Macronix and other related Taiwan-based suppliers for the gaming console including ChipMOS Technologies and Orient Semiconductor Electronics (OSE) are all expected to enjoy a ramp-up in demand for gaming consoles in the second half of 2019, according to industry observers.

By: DocMemory
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