The move is aimed at circumventing any component-supply problems with the production and launches of Nintendo's Game Boy Advance and Gamecube, problems which have hounded the launch of Sony's Playstation 2.
Under the agreement, Nintendo will lease $7.5 million worth of chipmaking equipment to Macronix to add new production facilities. The new facilities will have a monthly capacity of 3,000 8-inch wafer or 8-inch equivalent, which according to a Megachips spokesman will generate annual sales of 10 billion yen ($81.18 million).
