Though there is still uncertainty lying ahead because of the coronavirus pandemic, fabless IC designers are still anticipating a seasonal pick-up in demand from end market segments includign 5G phones. The IC designers are requesting more capacity support from their foundry service suppliers. And 5G infastructure construction in China is boosting shipments of optical components from Taiwanese makers. For passive components maker Yageo, sales in second-quarter 2020 rose thanks to improved utilization rates at its China plants.
Major Taiwan fabless firms strive for more foundry support: Taiwan's first-tier IC design houses, such as MediaTek, have demanded more capacity support from their foundry partners recently, according to industry sources.
Optical component makers see increased shipments for 5G: Taiwan-based optical component suppliers have seen shipments for 5G base station and other applications start gaining momentum thanks to an acceleration of 5G infrastructure construction in China, according to industry sources.
Yageo posts over 30% revenue increase in 2Q20: Passive components maker Yageo saw its second-quarter revenues climb 34.4% sequentially to NT$13.47 billion (US$457.7 million), thanks mainly to improvement in factory utilization rates in China.