IC design houses Elan Microelectronics and Holtek Semiconductor expect to post higher revenue growth in the second quarter of 2012, buoyed by a pickup in demand coming from the consumer electronics sector. Both firms have estimated that their sales for the first quarter will register slight sequential increases.
Elan is confident of achieving revenue growth of more than 10% in 2012 with gross margin exceeding the 32% reached last year, the company said during a February 16 investors conference. Shipments of Elan's touch controller ICs and solutions for PC peripherals are expected to rise driven by its clients' new product rollouts, the chip designer indicated.
Elan's first-quarter revenues are set to come in better than expected, thanks to a gain recognized related to its patent license and legal settlement with Apple, the Taiwan firm noted. Revenues for the second quarter will start reflecting a ramp-up in customer orders, it added.
Elan will start shipping its touch controller products to US and China-based smartphone vendors in the second quarter of 2012, company chairman IH Yeh revealed. The company is also expected to secure new orders from Japan-based clients with mass production slated for the second half of the year, according to Yeh.
Meanwhile, Elan's touch controller ICs are also being used in tablet PCs with clients mainly based in China and Taiwan, said Yeh.
Elan reportedly will break into the supply chain of brand-name tablet vendors including Lenovo, Asustek Computer and Vizio with its touch controllers later in 2012.
In addition, fellow consumer IC design firm Holtek expects revenues to hit bottom in January, but grow through March. Revenues for the first quarter will likely register a single-digit sequential increase.
Holtek has seen demand from its customers start rising after the Lunar New Year, according to company president Gordon Gau. Holtek's book-to-bill ratio has climbed above even, said Gau.
Gau stated that sales generated from Holtek's new products will boost company sales performance during 2012, and maintain its gross margin at high levels of more than 40%. Holtek has developed new solutions targeted at home appliance, medical and touch device applications, Gau added.
Article translated by Jessie Shen
