Second-tier Taiwan-based IC packaging and testing companies Greatek Electronics, Lingsen Precision Industries and Taiwan IC Packaging (TICP) will likely see their revenues for the fourth quarter of 2010 decline about 20% sequentially as a result of seasonal effects.
Greatek, which focuses on the consumer electronics market, saw its October sales hit the lowest monthly level so far for 2010. It turned in NT$666 million (US$21.8 million) in October revenues, down 4.4% on month and 22.9% on year.
Greatek's overall utilization rate has slipped to 65-68%, coming below an average of 78-80% in the third quarter. The company said customers began to slow the pace of their orders after the second quarter, amid mounting inventory pressure.
Greatek expects to see its clients begin to restock their inventory December in preparation for the Lunar New Year holidays. Revenues for November are likely to remain similar to October levels, the company added.
Lingsen, another packaging and testing player in the consumer IC segment, has reported October revenues of NT$450 million, the second lowest thus far for 2010.
Though Lingsen reportedly began fulfilling an order placed by InvenSense in the fourth quarter, the backend firm's revenues for the quarter are still set to decrease by 20% on quarter, according to market sources.
TICP saw October sales slide below NT$300 million, the lowest since February. The company revealed that its overall utilization rate has dropped to 60-70% from 100% in the third quarter.
Article translated by Jessie Shen
