The ongoing tight supply of MediaTek's major 4-in-1 connectivity chip series for use in entry-level and mid-range smartphone solutions is expected to ease completely in the third quarter of 2016, according to industry sources.

Shipments of MediaTek's MT6625-series 4-in-1 connectivity chips manufactured at Taiwan Semiconductor Manufacturing Company's (TSMC) Fab 14 located in southern Taiwan were disrupted by damaged wafers at the foundry due to an earthquake in February, and the supply of the chips has fallen short of demand since then.

MediaTek's shipments from TSMC affected by the February 2016 Taiwan earthquake are set to return to normal and satisfy growing demand for the MT6625 chips in the third quarter, the sources indicated.

Market watchers expect MediaTek to post revenue growth of about 30% sequentially in the second quarter of 2016, and another double-digit increase in the third quarter.