Advanced Semiconductor Engineering (ASE) and Silicon Precision Industries (SPIL) are likely to see constraints in fab capacity limit their abilities to support strong revenue growth sequentially in the third quarter of 2010, according to industry sources. Another reason sequential growth for the quarter may be more modest than the same quarter in previous years is a particularly strong second quarter, the sources indicated.
ASE and SPIL are expected to report on-quarter revenue increases of 5-10% and 5%, respectively, for the third quarter compared to 10-15% growth they normally generate, the sources said.
The sources estimated ASE and SPIL saw second-quarter revenues rise by 20% and 3-5%, respectively, on quarter.
ASE was quoted in previous reports saying revenues would grow sequentially through August, buoyed by brisk demand for PC and consumer electronics applications. It has utilized 100% of its packaging capacity, and 85% of testing since the second quarter.
ASE said at its most recent investors conference that shipments would rise 11-13% sequentially in the second quarter, and its average ASP for the quarter would stay flat from the first quarter.
SPIL estimated in early April that second-quarter utilization rates of its wire bonding, flip-chip (FC) ball-grid array (BGA) packaging and logic IC testing capacity would reach 100%, 95% and 85%, respectively. It did not provide financial estimates for the quarter, but pointed out that ASP and gross margin might be affected by gold prices and foreign exchange losses.