IC backend service companies Advanced Semiconductor Engineering (ASE) and Silicon Precision Industries (SPIL) will both see their October revenues continue to rise sequentially thanks to strong demand coming from the communications sector, according to market sources.

Companies such as Broadcom, MediaTek, Qualcomm and Spreadtrum have stepped up their pace of orders, which will boost revenues at their backend suppliers in the fourth quarter, the sources indicated.

MediaTek, for example, has increased its orders for wafer starts at foundry houses since August, the sources observed. Orders for its MT6575 have reached 15,000 wafers monthly, up 50% from the previous 10,000 units, the sources said.

In addition, orders for MediaTek's MT6577 solution will likely increase to 6,000-10,000 wafers monthly in the fourth quarter of 2012, the sources noted.

In response, ASE indicated that demand for communications chips appears stronger than that for both PC- and consumer electronics-use ICs. Judging from the orders received thus far, ASE said that orders for October stand a chance of beating the September levels.

SPIL responded saying the company is still unable to estimate the order visibility for October.