Most Taiwan-based semiconductor assembly and test service companies have adopted a positive attitude toward the second quarter of 2012 judging from the orders received thus far, and also given that upstream manufacturers including Taiwan Semiconductor Manufacturing Company (TSMC) have voiced optimism about their business outlook for the quarter.

With foundries expected to hike their wafer shipments in the third quarter, the packaging and testing houses expect their revenues to rise simultaneously to their highest levels for a year, company sources believe.

March revenues at major backend houses Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries (SPIL), and testing specialists Ardentec, King Yuan Electronics (KYEC), Sigurd Microelectronics and STATS ChipPAC Taiwan Semiconductor all registered substantial growth sequentially thanks to a pick-up in orders. Orders continue to rise in April, and will likely remain brisk through the third quarter, according to the sources.

SPIL, for instance, saw its March sales increase 18% on month. The firm suggested previously that there had been a ramp-up in orders coming from the PC, communications and consumer electronics sectors. Orders would continue to grow into the second quarter, SPIL said.

KYEC indicated that TSMC's optimism is good news for the packaging and testing sector. However, KYEC expects its order visibility to become clearer around the end of April so that the firm can make forecasts.

Ardentec and Sigurd both agree that customer demand is increasing, and expect to post sales and gross margin growth sequentially in the second quarter.

STATS ChipPAC Taiwan Semiconductor, a testing subsidiary of Singapore-based STATS ChipPAC, reported first-quarter revenues climbed as high as 25% on quarter. The firm reportedly is one of TSMC's major testing partners.