MediaTek has warned its China-based handset clients that they might have placed more orders than their actual demand, in consideration of potential overbooking, according to industry sources.

MediaTek has seen a rapid pick-up in chip demand from China's handset industry. Nevertheless, MediaTek is viewing the recent rise in orders as an unusual boom, and has expressed caution to its customers to demand conservatively, said the sources.

Robust demand from China's handset industry will help MediaTek boost its second-quarter revenues by more than 30% sequentially, the sources indicated.

MediaTek has reported consolidated revenues of NT$23.02 billion (US$708.11 million) for April 2016, up 52.3% on year and hitting a record high. MediaTek expects revenues to grow 24-32% sequentially to between NT$69.3 billion and NT$73.8 billion in the second quarter of 2016.