Macronix expressed at an online financial reporting meeting on July 25th that consolidated revenue for q2 was TWD7.479 billion, up 24.05% quarterly and down 15.78% annually; gross profit margin was 27%, increasing by 2% quarterly and decreasing by 18% annually; net profit after tax was TWD 264 million, increasing by 86% quarterly; after-tax earnings per share was $0.14, which shows its operation was out of the woods.

Storage prices have fallen sharply since last year. Macronix 's total revenue was TWD 13.508 billion in the first half of the year, down 24.71% annually; after-tax net profit was TWD 406 million, more than 90% lower than the same period last year, and the earnings per share were TWD 0.22, much lower than the level of TWD 1.28 in the same period last year.

Ye Peifu, deputy general manager, said only ROM grew the most strongly in the second quarter and revenue increased by 75% quarterly and 41% annually, accounting for 29% of the total revenue, which shows customer demand has recovered and meet the company's operating goal.

Looking ahead to the third quarter, general manager Lu Zhiyuan is very optimistic for the second half and said that the demand of ROM and flash memory is strong with peak season coming. He added that many cases of flash have entered mass production at present. As 5G and other products are expected to break out in the future, customers will continue to use Macronix’s products.

With the coming of 5G, Lu Zhiyuan pointed out that 5G edge computing requires a lot of small capacity storage, while base stations need a large capacity storage, so there is a need for both NOR and NAND. Macronix has been sending samples to 5G related manufacturers such as Huawei. Due to the competitive quality of products, Macronix is believed to be the first choice of manufacturers and the company will not be absent from 5G market business.

Lu Zhiyuan analysis that the price is relatively stable-NOR price return to the stable and NAND price pick up some- because Macronix focus on cultivating high-density and high-quality products. With ROM, NOR, NAND particle shipment number increased in the third quarter, he is very confident about the future operation.

Tencent announced the introduction of Nintendo Switch, which will help the performance of Macronix. Mr. Lu said customers don't tell them how much they can sell, but hope for more. In addition, industry insiders concern whether Macronix will benefit from the trade war between Japan and South Korea.
Lu Zhiyuan responded that now the situation is very chaotic and volatile, now only know at least no bad, but not sure whether the good. Therefore, Macronix focus on their business.

Macronix chairman Wu Minqiu recently revealed capital expenditure will be about TWD 14.2 billion this year on improving manufacturing process from 36nm to 19nm in order to meet customers’ need of SLC NAND Flash and 1-8gb eMMC NAND Flash product. Lu Zhiyuan also pointed out that 19 nanometer NAND Flash products have begun to verify expected to bulk shipments in the second half of the year; 3D NAND is expected to complete research and development in 2021.

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