Upcoming roll-outs of new smartphones and other mobile devices are set to drive demand for NAND flash and mobile DRAM chips, according to Taiwan-based memory IC packaging and testing firms, adding that orders have started to pull in.

Mobile DRAM companies have gradually completed their inventory clearance, while embedded NAND flash memory is gaining popularity in the smartphone market, the backend firms indicated. The visibility of orders for the second quarter is clear, the firms added.

Powertech Technology (PTI) has seen demand for NAND flash used in high-end mobile devices rise significantly in March, the company indicated. Sales generated from orders for NAND flash are expected to account for more than 30% of its overall revenues in the first quarter of 2013, the company said.

However, continued weakness in the PC market, as well as inventory adjustments at its mobile DRAM customers earlier in the first quarter, are likely to drag down PTI's capacity utilization rates to 85% on average in the quarter, the firm noted.

Fellow firm Walton Advanced Engineering indicated that orders for mobile DRAM and specialty DRAM have picked up starting March, which boosted the company's packaging utilization rate to more than 75% from 70% in February.

In contrast, Walton continues to suffer from low visibility of orders for standard DRAM products, due to sluggish conventional PC and notebook sales, the firm noted. To mitigate the impact of a shrinking PC market, Walton added that it has already raised the proportion of production devoted to PC DRAM.

Walton pointed out that sales generated from orders for mobile DRAM and specialty DRAM chips have now accounted for more than half of company revenues. The proportion will climb further to surpass 60% in the second half of 2013.