Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries (SPIL) are expected to see their sales for the third quarter of 2013 affected by reduced orders from Qualcomm, which is slashing IC backend service orders due to slower than expected sales of Samsung Electronics' Galaxy S4 smartphones, according to industry sources.

　　Samsung reportedly has lowered its shipment target of the Galaxy S4 for the second quarter of 2013 to 23 million units from 26 million units and has also cut the target for the third quarter to 21 million units from 23-24 million units, the sources revealed.

　　The adjustments in shipment targets have forced Samsung to reduce its purchases of application processors used in the Galaxy S4 from Qualcomm, noted the sources, adding that Qualcomm will continue to produce the CPUs for the smartphone at Taiwan Semiconductor Manufacturing Company (TSMC) but will not deliver the wafers to ASE or SPIL for needed back-end services.

　　Affected by reduced orders from Qualcomm as well as from Broadcom, ASE is expected to see its revenues grow by a mid-to-high single digit rate in the third quarter compared to an over 10% sequential growth projected previously, the sources indicated.

　　SPIL will be less affected by reduced orders from Qualcomm, as orders it received from Qualcomm are less than those received by ASE, said the sources, noting that SPIL is likely to continue to enjoy an over 10% sequential revenue gains in the third quarter.