IC design houses experiencing strong order growth from China


Most Taiwan-based IC designers have experienced a surge in orders from China-based branded and white-box handset vendors recently, assuring strong revenue gains for March and April, industry sources believe.

Along with sufficient capacity support from their foundry partners, Taiwan-based IC designers are able to boost their shipments in March enabling sales growth of 10-20% sequentially, according to the sources. March sales have been mostly driven by orders from their China-based clients, the sources said.

Taiwan's IC designers, which rely much on the China market, are all expected to see their first-quarter sales come in line with their previous guidance or even outpace the targeted levels, the sources indicated.

Sources at Taiwan-based LCD driver IC suppliers disclosed that their handset customers in China have stepped up their pace of orders in particular those for smartphones and 3G handsets since the beginning of March. Orders for feature phones - mainly exported outside China, are also picking up to reflect inventory replenishment, the sources noted.

Major LCD driver IC design companies including Orise Technology and Sitronix Technology will likely enjoy sales growth sequentially through the end of the second quarter, buoyed by booming orders from China, the sources added.

Other handset chip providers such as controller IC design houses Elan Microelectronics, Ilitek and Egalax-empia Technology (EETI), and suppliers of ambient light sensors including Capella Microsystems are all set to enjoy revenue growth through the second quarter as mass shipments to their China clients kick off, industry sources in Taiwan suggested. 


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