Speculation has circulated in the semiconductor market that MediaTek recently cut its 28nm chip orders to Taiwan Semiconductor Manufacturing Company (TSMC) for June, July and August by a total of around 20,000 wafers, according to a Chinese-language Economic Daily News (EDN) report.
The cut in 28nm chip orders accounts for nearly 30% of MediaTek's total wafer starts for the process each quarter, the report indicated.
MediaTek is likely to be conservative about the prospects of its handset-chip business for the third quarter of 2017, the report cited market watchers as saying.
MediaTek is scheduled to hold its quarterly investors meeting on April 28 to discuss its performance in the first quarter, and provide a business outlook.
MediaTek posted revenues of NT$56.08 billion in the first quarter of 2017, up 0.3% from a year earlier but down 18.3% sequentially. Nevertheless, revenues for the quarter came within the company's guidance range of NT$53.6 billion to NT$59.1 billion.