TAIPEI (Taiwan News) — Macronix on Tuesday announced plans to invest NT$22 billion (US$699.1 million) this year to expand production capacity, aiming to ease a global NAND flash memory shortage.

The Taiwan-based memory chipmaker said at an earnings conference that the investment will be used to boost output of scarce NAND flash products as supply tightens across the industry. With factory facilities already in place, the company said the expansion timeline will be shortened, per Liberty Times.

Monthly production capacity for 12-inch wafers is expected to increase from the current 20,000 wafers to 30,000 wafers in the initial phase. By the end of the year, an additional 10,000 wafers per month will be added, Macronix said.

The capacity expansion is expected to significantly boost the company’s revenue and gross profit while positioning Macronix to become the world’s largest NAND flash memory supplier. Due to strong demand, the company said it will prioritize expanding existing capacity and delay the launch of new products, including its 3D NOR flash memory, by two years.

Macronix President Lu Chih-yuan (盧志遠) said business surged during the COVID pandemic, prompting the company to plan nearly NT$40 billion in capacity expansion. However, the post-pandemic economic downturn forced an abrupt halt, with only NT$18 billion ultimately spent.

Lu said the company has now decided to allocate the remaining NT$22 billion this year. He added that the earlier investment was used to acquire high-end machinery and equipment, with some factory expansion facilities already completed. 

On inventories, Lu said Macronix holds its largest stock in NOR flash memory, while inventories of SLC NAND flash memory and MLC eMMC NAND flash memory remain limited. Most current sales, he added, consist of recently manufactured memory products.

Macronix said its expansion is expected to meet rising market demand, particularly after Samsung announced it would halt production and supply of eMMC NAND flash memory, worsening the shortage. The company’s focus is the mid- to high-density range, creating what it described as a major opportunity to become the world’s leading NAND flash memory manufacturer.

The company also noted that NOR flash memory, widely used in AI systems, is in short supply. Addressing the US government’s proposed tariffs on memory products, Lu said Macronix’s direct sales to the US remain limited.

Explaining the delay of its 3D NOR flash memory, Lu said the product is not on an urgent timetable and requires a lengthy customer validation process. “We are currently extremely busy, and demand for 3D NOR flash memory is not particularly strong,” he said, adding that the product was originally aimed at automotive customers, a sector where demand is currently weak.