Taiwanese memory chip manufacturer Winbond Electronics Corp. reported a fourth-quarter net loss of NT$678 million (US$21 million), widening from NT$60 million in the previous quarter as weakening demand and pricing pressures hit its core business segments.
Revenue fell 12.3% quarter-on-quarter to NT$18.7 billion, with the company’s flash memory division seeing an 11% sequential decline in sales. The customized memory solutions (CMS) unit posted an even steeper 22% drop as bit shipments decreased in the high-teens percentage range.
The deteriorating performance led to an operating loss of NT$741 million, compared to a profit of NT$272 million in Q3. Gross margin contracted to 27.2% from 29.3% in the previous quarter.
“We’re seeing a balanced supply-demand outlook for NOR flash in the first half of 2025, with mild demand growth anticipated later in the year,” said James Chen, President of Winbond. The company expects its memory chip oversupply situation to ease by the second half of 2025.
Despite near-term headwinds, Winbond is pushing ahead with sustainability initiatives, including a proprietary carbon accounting system and plans to increase renewable energy usage to 50% by 2030. The company was selected for the S&P Global Sustainability Yearbook 2025.
For the full year 2024, Winbond posted a net income of NT$710 million on revenue of NT$81.6 billion, showing improvement from 2023 when it recorded a NT$34 million profit on NT$75 billion in sales. The company maintains its position as the world’s leading NOR flash supplier.
