MediaTek is expected to see its March sales rebound to previous high levels of around NT$20 billion (US$630 million), buoyed by a pick-up in demand from China's smartphone market, according to industry sources.

The supply chain has seen China-based handset manufacturers cut back on orders since the fourth quarter of 2014, and engage in inventory adjustments, the sources indicated.

However, demand from China's smartphone market is showing signs of a pick-up, as vendors are gearing up to launch 4G devices in the second quarter, the sources said.

MediaTek saw its February revenues fall by a disappointing 44.6% sequentially. Some market observers have warned that the company's first-quarter revenues might reach only the low end of its guidance.

MediaTek estimated previously that consolidated revenues for the first quarter of 2015 would be between NT$45.5 billion and NT$49.9 billion, representing a sequential decline of 10-18%. Revenues dropped below NT$10 billion in February.