The visibility of orders for DRAM memory will become clearer in the second quarter of 2012, as demand is picking up from notebook vendors who are gearing up for product launch, industry sources believe.

The ramp-up in DRAM orders is expected to allow related packaging and testing firms to report double-digit sequential growth in sales for the second quarter, according to the sources.

The general market consensus is that DRAM prices are set to start rallying in the second quarter. One contributing factor is a seasonal rise in notebook demand and the other is a supply reduction as a result of Elpida Memory's bankruptcy.

Most of Taiwan-based memory packaging and testing houses saw their March revenues rebound after a weak January-February period. They expect sales to hit bottom in the first quarter and start recovering in the second quarter, and will edge higher in the third quarter on rising shipments.

In other news, Powertech Technology (PTI) and Walton Advanced Engineering have both reiterated that their shipments to Elpida remains within normal levels. According to Walton, order visibility is clear on brisk customer demand, and the firm continues its stable shipments to Elpida.

Walton expects its shipments to enjoy on-month growth during the second quarter, and climb to high levels in August and September. Walton also revealed its average utilization rate will top 90% in the second quarter from 80% in the first.

Formosa Advanced Technologies (FATC), which provides backend services mainly for Nanya Technology, expects to see its sales and shipments rise ni the second quarter thanks to more output from its customers that shift to newer process technologies as well as favorable market conditions.