Revenues for the six main LCD driver IC companies in Taiwan reached NT$28.18 billion (US$940.04 million) in the second quarter of 2014, up 13.1% on quarter and 4.1% on year, according to Digitimes Research.
Shipments of LCD driver ICs alone by the top-six makers totaled NT$23.55 billion in the second quarter, increasing 10.4% from the previous quarter.
In terms of applications, sales of small-size LCD driver ICs were up 13.6% sequentially in the second quarter compared to a 6.9% growth enjoyed by medium- and large-size LCD driver parts. Shipment growth rate and values of small-size driver ICs will continue to be higher than that of the medium- to large-size driver ICs in the third quarter.
However, shipments of medium- and large-size LCD driver ICs for Ultra HD TV applications are expected to soar 105% sequentially in the third quarter although the ratio of Ultra HD TVs to total LCD TVs still remains low.
Since the third quarter of each year is a peak season for the IT industry, ability for LCD driver IC vendors to secure sufficient wafer capacity at foundry houses will be essential for the makers to stabilize their shipments as well as to ramp sales growth.
Meanwhile, due to a rebound in demand for low-cost smartphones in China in the third quarter, ILi Technology (Ilitek) will take the opportunity to ramp up its shipments of WVGA driver IC parts. Himax Technologies is also expected to see its shipments of LCD driver ICs for smartphone applications pick up stream in the third quarter thanks to a rebound in orders from clients in Korea.
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