Macronix International Co Ltd

TWSE:2337

Earnings Call Transcript 2022-Q1

[Operator]

Good day, and thank you for standing by. Welcome to Macronix International Company Limited First Quarter 2022 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

The presentation and discussion contains certain forward-looking statements with respect to the results of operation, financial condition and current expectation. The forward-looking statements are subject to known and unknown uncertainties and risks that could cause actual results to differ materially from those expressed or implied by such statements.

Such risks and uncertainties include, but are not limited to the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new technologies, ability to ramp new products into volume, industry wide shifts in supply and demand for semiconductor products, industry overcapacity, availability of manufacturing capacity, financial stability in end markets, and other risks. These forward-looking statements in this release reflect the current belief of Macronix as of the date of this release, and Macronix undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date.

And now let me turn the call over to Dr. Miin Wu, Chairman and CEO of Macronix. Thank you. Please go ahead, sir.

[Miin Wu, executive]

Well, thank you. Thank you. First is welcome to Macronix first quarter financial review. I think the -- when I get into the presentation, I will convert into Chinese. Hopefully, that will work out, okay? If you have any questions, you can always ask after our presentations, we will try to answer everything you have. [Foreign Language]

[Pei-Fu Yeh, executive]

[Foreign Language]

[Miin Wu, executive]

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[Miin Wu, executive]

[Foreign Language] May I know who are the customer for NAND SLC business and how much TWS business take account as a percentage of the total sales?

First is I cannot share with you who are our customer in the NAND SLC business, okay? But some of the business we are doing relate to the automotive. Most of our high-quality NAND are automotive related. How much TWS business take account? I think it's very low, okay? As I said, most of people doing TWS is by working with Apple, and we are not interesting to work with Apple in those business. So basically, we -- our businesses mainly come from the automotive, industrial 5G base station, those high-quality applications.

[Foreign Language]

[Pei-Fu Yeh, executive]

[Foreign Language]

[Miin Wu, executive]

[Foreign Language]

[Pei-Fu Yeh, executive]

[Foreign Language]

[Miin Wu, executive]

[Foreign Language]

[Pei-Fu Yeh, executive]

[Foreign Language]

[Miin Wu, executive]

[Foreign Language]

[Pei-Fu Yeh, executive]

[Foreign Language]

[Miin Wu, executive]

[Foreign Language]

[Pei-Fu Yeh, executive]

[Foreign Language]

[Miin Wu, executive]

[Foreign Language] Would you mind telling us the sales breakdown by application for SLC NAND? Example, automotive, computer, consumer, communication, [Foreign Language]

[Pei-Fu Yeh, executive]

[Foreign Language]

[Miin Wu, executive]

[Foreign Language] But could you rank the other segment? Of course, on the gross margin, NOR should be the highest, but could you rank the other segment gross margin of first quarter '22?

I think the -- based on our internal study, most of the margin is about the same, except the ramps, okay, except ramp. Ramp margin rounded to below. So the other is almost the same.

Lastly, could you give us some color about FBG pricing trend?

Continue increase, okay? Because we are planning to do a very specific business on our FBG business. So we think that we will continue to be increase our margins.

[Foreign Language] Do we receive yen for ROM sales?

Yes.

With faster depreciating yen vs NTD, would our ramp margin be greatly impact negatively?

We will discuss with the customer, okay? Or is there pricing mechanism or hedging that counter?

Well, whatever we can do, we will do. But I cannot share with you how we're going to work with the customer.

[Pei-Fu Yeh, executive]

Yes. No more.

[Miin Wu, executive]

Okay. So now I answer all the questions already. So if you have any new questions, please. Otherwise, the -- in 5 minutes, we will close the financial review meeting. In 5 minutes, we will close. We give everybody 5 minutes, okay? So that means by 5:20, we will close the conference call. Since there's no more questions, maybe we will close it. There's some new questions. Okay. [Foreign Language] 1 more minute.

So operator?

[Operator]

Yes, sir.

[Miin Wu, executive]

Yes, I think our -- we will close the conference call. So please help us.

[Operator]

Certainly. So ladies and gentlemen, that does conclude our conference for today. Thank you for participating. You may all disconnect.