Thursday, September 27, 2012

IC design firms seeing strong demand from China smartphone market


Cage Chao, Taipei; Jessie Shen, DIGITIMES [Thursday 27 September 2012]

The expanding smartphone market in China has caused the supply of related chips, such as LCD driver ICs, touchscreen controller ICs and analog chips, to fall short of demand, according to industry sources.
Companies specializing in the design and development of smartphone ICs expect their sales performance in the fourth quarter of 2012 to be less affected by the weak season, the sources indicated. The growing demand for smartphones in China will be a main source of their revenue growth during the final quarter of the year, the sources said.

Taking the solutions provided by MediaTek as an example, prices for the firm's smartphone chips previously soared to as high as US$26 per unit due to strong demand coming from the white-box handset sector, the sources pointed out. MediaTek reportedly has increased its wafer starts at Taiwan Semiconductor Manufacturing Company (TSMC).

MediaTek president Hsieh Ching-chiang was quoted in a recent report saying that the company has enjoyed booming sales of its smartphone solutions, and the momentum will continue in the first quarter 2013. Hsieh cited an upsurge in replacement demand for smartphones in China as a contributing factor.

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