IC design firms MediaTek and MStar Semiconductor have reported mixed results for January 2011.
MediaTek posted consolidated revenues of NT$7.53 billion (US$260 million) in January, down 5.2% on month. Market sources speculate that the company's handset clients in China are still putting on hold their orders in anticipation of price cuts.
The sources were quoted as saying in previous reports that several handset companies intend to defer orders as they anticipate MediaTek may adjust its prices between the end of the first quarter and early second quarter.
MediaTek is likely to post another sequential drop in February consolidated revenues, affected by fewer working days in the month. However, sales are expected to rebound in March.
MStar announced January consolidated sales grew 17.6% sequentially to NT$2.63 billion, buoyed by rising TV chip shipments. The company will likely see March sales hit the company's highest level for 2011. MStar's consolidated revenues for the first quarter are set to stay flat at, or drop slightly from, the prior quarter's levels.