Taipei, Tuesday, May 26, 2015 13:56 (GMT+8)
mostly cloudy
Taipei
24°C
Digitimes Research: Silicon Works LDI business posts revenue drop in 2Q13 on falling iPad shipments
Ricky Tu, DIGITIMES Research, Taipei [Friday 18 October 2013]

South Korea-based IC design house Silicon Works saw revenues generated from its LCD driver IC (LDI) business fall for a second consecutive quarter sequentially in the second quarter of 2013, due to a slowdown in orders for Apple's iPad devices, as well as its narrow target applications, according to Digitimes Research.

Silicon Works' driver IC solutions are targeted mainly at tablets and notebooks. The company has reportedly entered the supply chain of Apple, through providing driver ICs to LG Display.

Buoyed by robust iPad sales, revenues of Silicon Works' LDI business climbed to KRW100.6 billion (US$3.43 billion) in the second quarter of 2012, Digitimes Research said. This represented an about 87% jump compared to KRW53.8 billion in the first quarter, and more than a doubling from only KRW47.4 billion in second-quarter 2011.

Silicon Works' LDI business accounted for more than 80% of company revenues in the second quarter of 2012, up from 60-62% over the previous four quarters, as a result of its rapid expansion, Digitimes Research indicated.

However, due to weakening demand for Apple's iPad, revenues of Silicon Works' LDI business fell below KRW100 billion in the first quarter of 2013, Digitimes Research observed. Revenues continued to contract in the second quarter, slipping to KRW62 billion or 71.5% of Silicon Works' total revenues.

In addition, unlike fellow Taiwan-based LCD driver IC companies, which target applications ranging from handsets, notebooks and LCD TVs, Silicon Works' LDI business was negatively affected by its unfavorable product mix in the first half of 2013, Digitimes Research noted.

Silicon Works' driver IC shipments for Apple's iPads, for instance, accounted for as much as 48% of company revenues in the third quarter of 2012. The proportion had already shrank to less than 30% in 2013, Digitimes Research pointed out.

Digitimes Research anticipates that Silicon Works' LDI business is set to suffer its first revenue decline since 2008 in 2013.

Source: Digitimes Research, October 2013

Realtime news
  • CES Asia: Haier to partner with Intel for wireless charging technology

    IT + CE | 1h 21min ago

  • Simplo under pressure in competition for next-generation iPhone battery orders

    Mobile + telecom | 1h 26min ago

  • Zhen Ding and Flexium to see strong 2015 EPS thanks to iPhone orders

    Mobile + telecom | 1h 59min ago

  • GCL insures PV modules

    Green energy | 2h 27min ago

  • Hans von Mangoldt Taiwan sets up electric reactor factory

    IT + CE - Newswatch | 2h 30min ago

  • Global 1Q15 mobile DRAM sales slip 1%, says DRAMeXchange

    Bits + chips | 2h 50min ago

  • HMI EPS for 2015 to rise

    Bits + chips - Stockwatch | May 25, 22:05

  • New iPhone uses smaller LED backlight unit, say Taiwan makers

    LED | May 25, 22:05

  • Taiwan makers promoting PERC polycrystalline solar cells

    Green energy | May 25, 21:59

  • Samsung to invest in Wuxi, China for polarizer factory

    Before Going to Press | May 25, 22:00

  • Merry Electronics needs a step to become iPhone supply chain maker

    Before Going to Press | May 25, 21:14

  • Foxconn, Pegatron not to be replaced for OEM production of iPhone, say Taiwan makers

    Before Going to Press | May 25, 21:13

  • China market: Smartisan to launch 5.5-inch smartphone

    Before Going to Press | May 25, 20:16

  • Samsung expected to lead in Ultra HD TV sales in Taiwan during 2015

    Before Going to Press | May 25, 20:14

  • Taiwan LCD driver IC firms eyeing orders from Apple, Samsung

    Before Going to Press | May 25, 20:14

  • Hisense launches new 4K ULED TVs

    Before Going to Press | May 25, 20:13

  • Computex 2015: Smart living gaining attention from vendors

    Before Going to Press | May 25, 20:13

Pause
 | 
View more

Taiwan server shipment forecast and industry analysis, 2015

RESEARCH EXTRAS | Apr 10, 15:57

The server market did not perform well in 2014 though rising demand from Internet data centers (IDCs) and China brands helped global shipments (measured by motherboards) grow 7.1% to 10.4 million. Using this as the base for growth, in 2015 the market is expected...

How China is shaping the LTE/TD-LTE market in 2015

CHINA SMARTPHONE | Apr 9, 15:42

Digitimes Research estimates that the global LTE market doubled in size to 445 million users in 2014 and we further forecast that annual growth in the number of LTE users will remain above 70% between 2015-2016, with the overall market reaching 1.466 billion...

Taiwan LCD TVs – 1Q 2015

TAIWAN DISPLAY SYSTEM | May 22, 15:51

Taiwan's LCD TV makers saw strong seasonal impacts in the first quarter of 2015. Shipments to North America saw a particularly sharp decline as a result of reduced procurement from Mexico and major client Toshiba quitting the North America market.

Taiwan handsets – 1Q 2015

TAIWAN MOBILE DEVICE | May 15, 15:58

Most of Taiwan's handset makers felt strong seasonal effects in the first quarter. Foxconn suffered particularly as a result of drastic drops in orders from Sony Mobile and Microsoft Mobile.

China smartphone market and industry – 1Q 2015

CHINA SMARTPHONE | May 13, 10:56

According to Digitimes Research's survey of the Mainland China smartphone supply chain, as well as other relative vendors, increased demand for Apple's new device models, Mainland China's high-end smartphone models experienced lackluster sales in the first quarter...

Taiwan server shipment forecast and industry analysis, 2015
2015 China smartphone panel trend forecast
2015 global notebook demand forecast
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.