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Memory Chip Demand Far Exceeds Supply, Macronix CEO Says; 80% Gross Margin 'Within Reach'

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

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  • Macronix International's CEO expects demand for memory chips to continue outstripping supply, leading to price increases.
  • The company anticipates its gross profit margin to reach 80% in the near future.
  • This surge is attributed to the growing demand for memory driven by artificial intelligence applications.

The memory chip market is experiencing a "super cycle," with demand far exceeding supply, according to Macronix International's CEO, Lu Chih-yuan. The company, a key player in the memory sector, forecasts continued price increases for its products as a result of this imbalance.

Lu stated that both NAND Flash and eMMC memory demand are strengthening simultaneously. He indicated that market demand is "far from being satisfied," suggesting a robust outlook for the company's sales and profitability. Macronix is optimistic about its financial performance, with Lu projecting that the company's gross profit margin could reach 80% in the foreseeable future.

Market demand is far from being satisfied.

— Lu Chih-yuanDescribing the current supply-demand imbalance for memory chips during Macronix International's earnings conference call.

The primary driver behind this surge in demand is the rapid expansion of artificial intelligence (AI) applications. AI technologies require significant amounts of memory to process complex data, leading to a substantial increase in consumption for memory manufacturers like Macronix. The company's strong performance at its earnings conference call on August 28th reflects the positive market conditions and its strategic position within the burgeoning AI ecosystem.

Gross profit margin of 80% is within reach.

— Lu Chih-yuanExpressing confidence in the company's future profitability during the earnings conference call.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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