MediaTek is expected to see its revenues return to NT$10 billion (US$337.84 million) in March and its second-quarter revenues grow 20-30% sequentially thanks to better than expected sales of TD-SCDMA smartphones by China Mobile and strong demand for its quad-core solutions, according to industry sources.

China Mobile has been giving handsome subsidies for the purchase of TD-SCDMA models since the beginning of 2013, and the efforts have paid off well, particularly during the Lunar New Year holidays – an achievement that has helped reduce inventory of TD-SCDMA chips in China, while resulting in returning chip orders for MediaTek, said the sources.

Meanwhile, other smartphone vendors in China have started re-building their chipset inventories due to brisk sales of entry-level and mid-range smartphones during the week-long holidays, the sources added.

Due to a lack of competitors, MediaTek will enjoy booming sales of its MT6589 quad-core solutions, particularly in China, with shipments will gain momentum in March and advance further in the second quarter, said the sources.