ChipMOS Technologies, which specializes in assembly and test services for LCD driver ICs and memory chips, has seen orders for NAND flash memory and small-size panel driver ICs pick up. The backend house is expected to post over 10% revenue growth sequentially in the second quarter of 2013, according to market watchers.

ChipMOS' major clients in the LCD driver IC field, such as Novatek Microelectronics, ILI Technology (Ilitek) and Orise Technology, have stepped up their pace or orders since March, the watchers indicated. ChipMOS has seen orders particularly those for gold-bumping and COG packaging services ramp up recently, the watchers said.

Novatek, Ilitek and Orise are among the Taiwan-based IC design firms which have benefited from the surging smartphone market in China.

As for large-size panel driver ICs, demand is expected to pick up around the end of the second quarter and further boost ChipMOS' revenues in the second half of 2013, the watchers pointed out.

In addition, ChipMOS is set to grow revenues from the NAND flash product segment in 2013, buoyed by new orders from Micron Technology. ChipMOS, which used to land Micron's orders for mostly DRAM products, has received more orders for NAND flash memory from the US client since the fourth quarter of 2012, the watchers observed.

Micron runs an assembly and test plant in Xian, China, and also outsources its backend production to foreign companies. Its acquisition of Elpida Memory, which is expected to close soon, will encourage the firm to increase its outsourcing. The watchers believe that Micron will release more orders to its backend partners starting the second quarter of 2013, and have pinpointed ChipMOS as one of the beneficiaries.

Standard DRAM and NAND flash products now account for 33% and 20%, respectively, of ChipMOS' overall revenues, following panel driver ICs with 38%. The company also provides backend services for mixed-signal ICs and specialty DRAM chips.