Macronix Annual Report 2003

Macronix was founded in 1989 as a firm specializing in advanced product design. Now in its 15th year, Macronix works towards industry leadership through the development of its own superior, self-branded products. In positioning itself as a complete integrated solutions provider (ISP), Macronix provides clients with timely, effective, and tailor-made solutions. Through pioneering new breakthroughs in technology and the highest level of service for clients, Macronix turns products into profit.

As an ISP, Macronix's development of its design and production capacities precisely meets the semiconductor industry's overall movement towards integration. In 2003, Macronix laid out the strategic themes of "Focus, Integration, and Execution" as a blueprint for reform. From an organizational standpoint, "Focus" refers to the priority placed on core projects that represent Macronix's most competitive products, as well as an elevation of overall operational efficiency. "Integration" refers to efforts to integrate upstream and downstream partners and resources in the supply chain, so as to promptly fulfill clients' needs and swiftly respond to market change. "Execution" refers to the way in which Macronix's efforts in research and development have led to technological breakthroughs that allow the company to introduce industry-leading products to market. With this blueprint in place, Macronix is able to offer high-quality products and comprehensive customer service to enhance profitability for and create a diversity of winwin partnerships with its many clients.

Data from the past year shows that the goals Macronix has set, as well as the hard work put in to reach those goals, are paying off. For 2003, operating costs fell 23% compared to the previous year, and the fourth quarter saw a return to profitability. Even so, product quality remains high, as is well attested by clients, and Macronix continues to win an increasing number of patent approvals. Since the third quarter of 2003, capacity utilization rate has attained 89%. All of these achievements are testimony to the strategic vision of "Focus, Integration and Execution."

Macronix is building upon its existing global leadership in Mask ROM to develop core nonvolatile technologies and associated spin-off technologies. This allows the company to accelerate the development of even higher capacity Flash memory products and to bring together Mask ROM and Flash technology in a complementary way, creating profit for Macronix and its clients.

Emphasizing "Focus, Integration and Execution," Macronix strives to coordinate internal as well as external resources, grasp hold of emerging technological and market trends, and create added value and profits for our clients.