MediaTek is expected to see its revenues rise 6-11% sequentially to NT$57-60 billion (US$1.9-2.0 billion) in the third quarter of 2014, propelled by shipments of MT6290 and MT6595 4G chips and rising ASPs, according to industry sources.

Buoyed by increasing wafer shipments from Taiwan Semiconductor Manufacturing Company (TSMC), MediaTek's smartphone solution shipments are bound to grow significantly in the third quarter as compared to the previous quarter, the sources indicated.

MediaTek's shipments of other chips for consumer electronics products, optical storage devices, networking devices and TVs will also gain momentum after August amid peak-season effects, added the sources.

MediaTek's gross margin is expected to stay at around 49% in the third quarter as it posted in the first half of 2014, as the improving cost structure of 3G chips will help offset the impact of fast declining 4G chip prices, commented the sources.