UNWAVERING FOCUSĄG
ENHANCING OPERATIONAL EFFICIENCY

The vision of "Focus, Integration and Execution" that has inspired Macronix's reorganization involves an optimal planning process and allocation of resources towards greater operational efficiency. Two business groups have been organized under the direction of the General Manager: the Microelectronics and Memory Solution Group, and the Integrated Solution Group. The former concentrates on non-volatile memory products such as Mask ROM and Flash, while the latter offers clients a range of integrated solutions. Each of the senior vice presidents in charge of these groups is thus able to unify the development, production, sales, and customer support for products and services provided by that business group. This results in a concentration of resources, heightened sales, and an overall enhancement of operational efficiency.


Project Priorities Through Strategic Goal-Setting

To thoroughly instill Macronix's strategic vision in regards to "Focus" and "Integration," a Business Committee led by the General Manager and senior vice presidents is charged with a periodic review of the Marketing/Product roadmap as well as the Technology/Manufacturing roadmap. Support and resources are allocated according to project prioritization. Each project's progress is facilitated through effective goal- and milestone-setting, which accelerates time to completion and results in products that can be swiftly mass-produced, brought to market, and rendered profitable. In 2003, Macronix's Business Committee played a vital oversight role that allowed critical projects to be completed in a timely fashion and allowing for the transition to advanced processes. This has resulted in elevated product gross profits and capacity utilization. Another main function of the Business Committee is to engage in strategic planning, effectively linking present and future technology with ongoing prooduct development.


Resource Allocation Towards Optimal Efficiency

In reviewing its primary areas of focus, Macronix has concentrated its firepower on 30 critical projects, selected from an original 75. As a result of this streamlining of personnel and resources, project completion rate has reached a lofty 80%, and projects have been executed with higher quality, in less time, and with greater profitability. For example, the timely completion of the 0.15µm process project led to a swift transition to mass production and profitability, which eventually accounted for 15% of net revenues in the fourth quarter of 2003, a 105% jump over the previous quarter. 0.15µm and 0.18µm fourth quarter revenues exceeded 42% of net revenues, which represents a 27% increase over the previous quarter. Macronix's shift in sales from a focus on 0.25µm and 0.4µm and over to 0.15µm and 0.18µm advanced processes reflects its continual innovation in technology and production, resulting in cost-effective and highly competitive products for its clients.