Chipbond Technology has expressed caution about the company's business outlook for the rest of 2011 and first-quarter 2012, as generally weak demand continues to plague the LCD panel market. However, the market is likely to see a rebound later in the second quarter of 2012, Chipbond said.

Chipbond provides packaging and testing services for driver ICs used mainly in TV and handset panels.

Chipbond indicated its sales are likely to register flat sequential growth in the ongoing fourth quarter, but sales would be affected by continued sluggish demand from clients as well as fewer working days in the first quarter of 2012.

Chipbond posted consolidated revenues of NT$1.06 billion (US$34.9 million) in November, down 6% on month. The company attributed the sales drop to postponed shipments at the request of customers.

Despite a general slowdown in orders, Chipbond has seen orders for small-size applications remain brisk, according to market watchers. Its 12-inch gold bumping and chip-on-glass (COG) packaging capacity is still fully utilized, the watchers said.

Chipbond reportedly has entered the supply chain of Apple's iPhone 4S, through providing Renesas 12-inch wafer gold bumping services, the watchers revealed. Chipbond's overall output for 12-inch gold bumping has reached 45,000 wafers from the 38,000 shipped monthly during the third quarter, the watchers indicated.

Chipbond's monthly shipments for COG packaging are expected to be 10-15% higher than the 300 million shipped during the prior third quarter, while those for chip-on-film (COF) packaging stay unchanged at 130 million units in the fourth quarter, according to the watchers. COF is mostly used for LCD TV applications.