Macronix cuts NOR flash output to ramp production of Mask ROM for Nintendo Wii
Hans Wu, Taipei; Rodney Chan, DigiTimes.com [Friday 26 May 2006]
Although NOR flash prices are climbing, Macronix International has reduced its output of the memory type to devote more capacity for Mask ROM for Nintendo's new game console Wii, according to industry sources.
Macronix has made the adjustment because competition in the NOR flash market is fierce and Mask ROM offers higher profits, the sources indicated. Macronix also wants to make sure that its important client's Wii game consoles can hit the market as scheduled in the fourth quarter, the sources added.
During the first quarter, NOR flash and Mask ROM accounted for 42% and 38%, respectively, of Macronix's capacity but the proportion for Mask ROM has now been raised to more than 50%.
According to research firm iSuppli, Macronix has 4-5% of the NOR flash market. The sources estimated that because of Macronix's adjustment to its product mix, worldwide NOR flash shipments in the second quarter will drop 12 million units.