Strong demand from non-iPad tablet sector to boost short-term performance of IC vendors

Demand for IC parts from the tablet industry in China has been stronger than expected in the first quarter of 2013, which could help boost the short-term performance of IC design houses, while offsetting the impact of slow demand from China's smartphone sector caused by high inventory levels, according to industry sources.

Entry-level tablets meet market demand in terms of pricing and functionality, particularly in China, said the sources, adding that demand for entry-level tables in China and other emerging markets could top 4-5 million a month in 2013 compared to 2-3 million in the second half of 2012.

MediaTek, while seeing demand for its handset solutions from China decrease in the first quarter of 2013, has also enjoyed emerging IC demand from the tablet sector, with plans to release chipset solutions for the segment in the second quarter of the year, the source revealed.

Since the growth momentum for tablets in 2013 is expected to come from non-iPad vendors in China and other emerging markets, Taiwan-based suppliers of LCD driver, analog and touch-controller ICs as well as those of Wi-Fi, audio and Bluetooth chips will benefit from the trend thanks to cost advantages and strong business ties in these markets, the sources commented.