Judging from Intel's revenue outlook, market watchers expect Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries (SPIL) to see revenue growth of up to 5% sequentially in the third quarter. The less optimistic projection is blamed on inventory problems.
ASE and SPIL are among the major providers of semiconductor assembly and test services, landing contract orders from fabless companies as well as IDMs.
In the third quarter, ASE and SPIL will have to count on demand from the consumer sector to help drive their sales as demand from the PC sector is expected to remain weak, the watchers indicated. The communications segment will see moderate growth during the period, the watchers added.
Both ASE and SPIL are in the quiet period prior to their upcoming investors conferences.
ASE previously hinted that sales of its packaging and testing unit are being affected by inventory correction in the supply chain. But the adjustment process is expected to complete later in the third quarter, and the company expects sales generated from the core business to see sequential growth in the third quarter.
SPIL earlier expressed concerns about an inventory pileup due to a slow second quarter. Inventory checks at clients may bring constraints on revenue growth in the third quarter, the company said.
In other news, Intel has reported second-quarter 2011 revenues of US$13 billion, up 1% on quarter and 21% on year. The company expects third-quarter revenues to reach US$14 billion, plus or minus US$500 million, showing an about 7% increase sequentially.