10.05.2001
Macronix foresees a tough 1H02

• Macronix expects a weak 1H02 on the back of the ongoing downturn in the semiconductor industry and dim prospects for its biggest customer Nintendo (JP) next year. The GameCube rollout in Japan on September 14 seems not to have lived up to expectations in terms of unit sales and software sell-through. The major US market’s take-up of the product is also uncertain due to recent events. Macronix says while 4Q01 Nintendo shipments are unaffected, cancellations may come in 1H02. We remain concerned on the level of inventory build that will hit NT$9bn by Y/E 01, or 137 days of 01 sales. Utilization will be adjusted down materially in 1H02, eroding cost structure and producing financial losses during the period.