Demand for chips from the notebook segment will remain weak in the first half of 2013 as the increasing popularity of tablets will further limit notebook sales in the year, according to sources at Taiwan-based IC design houses.

Although notebook vendors have been trying to fight the onslaught from the tablet sector with the launch of an array of ultrabooks or ultra-like models, the price gap between notebooks and tablets will continue to push consumers to buying tablets, said the sources.

Most IC vendors are hoping delayed Windows 8 replacement demand to finally emerge in the second half of 2013, pushing notebook vendors and ODMs to renew their IC orders, noted the sources.