MediaTek's shipments are still affected partially by Taiwan Semiconductor Manufacturing Company's (TSMC) wafer delivery delays caused by an earthquake that hit southern Taiwan in early February, and are unlikely to return to normal until May or June, according to industry sources.

Shipments of MediaTek's MT6625 4-in-1 connectivity chip, which is being manufactured at TSMC's Fab 14 located at the Tainan Science Park, were disrupted by damaged wafers at the foundry due to the earthquake. Though TSMC is striving to recover its lost production for MediaTek, the supply of the chip series remains tight, said the sources.

The supply of MediaTek's MT6625 series has fallen short of demand since mid-February, when its China- and Taiwan-based clients rushed to grab the available chips, the sources indicated. TSMC has stepped up production for the chips, but its supply is still short of demand.

Due mainly to delays in shipments of its MT6625 chips, MediaTek's revenues for March are unlikely to rebound to the January levels, the sources said.

MediaTek's January revenues climbed to a three-month high of NT$21.33 billion (US$661.8 million). But revenues fell to a 12-month low of NT$13.24 billion in February. The company's cumulative 2016 revenues through February increased 27.4% from a year earlier to NT$34.57 billion.

MediaTek's first-quarter revenues are estimated at NT$52.5-57.4 billion representing a sequential decrease of 7-15%.