IC sector to see strong Q3 due to electronics demand

Staff writer, with CNA

Mon, Jul 08, 2013 - Page 13

IC packaging and testing service providers are expected to see sales in the third quarter grow about 10 percent from the second quarter, largely on the back of strong demand for mobile communication devices, market analysts said on Saturday.

In addition to higher smartphone and tablet computer sales, the rising popularity of 4K2K ultra-high-definition televisions is likely to boost demand for IC packaging and testing services in the current quarter, they said.

Advanced Semiconductor Engineering Inc (ASE, 日月光半導體) chief operating officer Tien Wu (吳田玉) said smartphone and tablet vendors are expected to launch new models in the third quarter, boosting demand for packaging and testing services for mobile device chips.

Wu said that although the global personal computer market remains sluggish, it could still serve as one of the drivers of growth in the IC packaging and testing services sector.

ASE, the world’s largest IC packaging and testing service provider, forecast quarterly sales growth in the second half of the year and expects its annual revenue growth to surpass that of the entire industry.

Analysts said ASE’s consolidated sales are expected grow by at least 9 percent this year from the NT$193.97 billion (US$6.47 billion) recorded last year, when sales rose 5 percent from 2011.

For its part, Siliconware Precision Industries Co (矽品精密) said the global semiconductor industry would witness improved sales in the second half from the first, in turn boosting the IC packaging and testing sector.

Siliconware chairman Bough Lin (林文伯) said he had particular confidence in the demand for high-end IC packaging and testing services in view of growing smartphone, tablet and gaming console sales.

Lin said the high demand will likely see the high-end IC packaging and testing service segment experience a supply shortage in the second half.

Analysts said Siliconware could post sequential sales growth of 10 percent in the third quarter.

As sales of 4K2K TVs in China continues to grow, demand for driver ICs for LCD panels is seeing parallel growth, analysts said, adding that the trend was benefiting packaging and testing services providers for driver ICs, such as Chipbond Technology Corp (頎邦科技).

Analysts forecast Chipbond orders for the third quarter would grow 10 percent from the previous quarter.