Semiconductor Manufacturing International Corporation (SMIC) is expected to operate at 90% of its production capacity in the second quarter of 2013, buoyed by orders from IC design houses in China and Taiwan, according to industry sources.

Some Taiwan-based NAND flash controller and USB chipmakers have been advised to book wafer start orders for the second quarter of 2013 at SMIC in advance because the China-based foundry house has seen its order visibility extend to three months, and it would have no more production capacity available in the second quarter, the sources revealed.

China-based IC design houses, including Allwinner Technology and Rockchip Electronics, have been increasing their orders at SMIC as the rise of the tablet market in China has driven up demand for related ICs, the sources added.

Meanwhile, Taiwan-based IC suppliers are also placing more orders with SMIC to deepen their deployments in China as well as to better their inventory controls in Taiwan and China, said the sources.