The global semiconductor packaging and testing industry will only see flat sequential growth in the fourth quarter of 2011, as it continues to feel the effects of the economic downturn, according to industry watchers. Looking forward, the outlook over the next two to three quarters remains uncertain, the watchers said.

Industry leader Advanced Semiconductor Engineering (ASE) is likely to see sales affected by weak economies in Europe, Japan and the US during the fourth quarter, due to its business reliance on these developed markets, the watchers indicated. The company might suffer a slight sequential drop in fourth-quarter revenues, the watchers said.

In contrast, Silicon Precision Industries (SPIL) could post flat growth sequentially in the fourth quarter, supported by orders placed by MediaTek and MStar Semiconductor, the watchers estimated. Both MediaTek's and MStar's chip solutions are more targeted at demand in China and other emerging markets.

SPIL's revenue results for the third quarter of 2011 outpaced its guidance, whereas ASE missed its estimate of 3-6% sequential growth. Both firms are scheduled to hold quarterly investors meetings next week.

Source:digitimes