IC backend service companies, including Advanced Semiconductor Engineering (ASE), Silicon Precision Industries (SPIL), King Yuan Electronics (KYEC) and Sigurd Microelectronics, all expect to post strong revenues gains in September thanks to increasing orders from MediaTek, Qualcomm and Spreadtrum Communications, according to industry sources.
Buoyed by strong demand from China's smartphone and tablet PC makers including Lenovo, MediaTek increased its monthly wafer start orders for its MT6575 chips by 50% recently, pushing up its demand for backend services, the sources noted.
MediaTek also plans to ramp up wafer start orders for its MT6577 chips to 6,000-10,000 units a month in the fourth quarter of 2012. Totally, MediaTek will seek backend services for 12-15 million handset chips on average a month in the final quarter of this year, the sources estimated.
With major clients including MediaTek, Qualcomm and Spreadtrum, ASE is expected to post revenues of NT$11.5 billion (US$390.23 million) for September and NT$33.8 billion for the third quarter of 2012, meeting its guidance for a 4-6% on-quarter growth, the sources added.
SPIL is likely to generate revenues of NT$5.8-5.9 billion in September compared to NT$5.65 billion in August due also to increasing orders from MediaTek, the sources revealed.
Sguard has seen its revenues continue to post new records for six consecutive months ended August 31, and it is optimistic that the revenues will also remain high in September, the sources asserted.
KYEC, which offers backend packaging services to MediaTek, is expected to post a 5-10% sequential revenue gains for the third quarter, added the sources.