MediaTek Inc (聯發科), the nation’s biggest handset chip supplier, yesterday sharply raised its outlook for the first quarter on the back of stronger-than-expected demand in emerging markets, the company said in a statement.
Revenues could grow by between 8 percent and 13 percent in the quarter ending March 31, from NT$20.65 billion (US$588.4 million) in the final quarter of last year, rather than decline between 8 percent and 16 percent as estimated early last month, the statement said.
“MediaTek upgraded its outlook faster than I had expected, though I detect a resilient recovery in mobile phone demand in China and other emerging markets,” said Eric Chen (陳慧明), who tracks the semiconductor industry for BNP Paribas Securities.
“And this is an encouraging [message],” Chen said.
MediaTek, the biggest handset chip supplier in China, expects mobile phone chips to make up a bigger share of its revenues, at about 70 percent, this quarter from 65 percent in the final quarter of last year.
The Hsinchu-based chipmaker was also more confident about a gross margin uptrend. It said gross margin could rise slightly this quarter from 54.5 percent last quarter, helped by the constant appreciation of the US dollar against the local currency and growing shipments of high-end chips.
On Feb 6, MediaTek said its gross margin could be flat or rise slightly in the first three months of this year.
The chipmaker kept its forecast for operating expenses unchanged for this quarter at between NT$4.5 billion and NT4.7 billion, down from NT$5.7 billion.
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