Most Taiwan-based LCD driver IC suppliers have seen their order visibility improve as handset brands gear up for the launch of new models in the third quarter, and PC and notebook makers place more component orders to meet rising replacement demand from the end-market, according to industry sources.
In addition to increasing orders for the existing models, IC makers including Novatek Microelectronics, Himax Technologies, FocalTech Systems, Ilitek, Raydium Semiconductor and Sitronix Technology, are expected to see their revenues increase in the third quarter thanks to the release of new IC parts, said the sources.
Novatek's revenues edged up 10.2% sequentially to a record high of NT$18.61 billion (US$635.42 million) in second-quarter 2020, beating its guidance for the quarter.
The company's shipments of large-size LCD driver ICs have been stronger than expected due to robust demand from the desktop and notebook sector to support remote work and study, the sources noted.
As Novatek has also been ramping up its shipments of TDDI and OLED driver ICs, most makers in Novatek's supply chain expect the driver IC supplier to see its monthly and quarterly sales to hit new highs in the third quarter.
Meanwhile, FocalTech, Himax, Ilitek and Fitipower Integrated Technology have also landed more short lead-time orders recently that will strengthen the peak-season effect in the third quarter, said the sources, expecting these IC suppliers to enjoy double-digit percentage revenue growth in the third quarter.
In the face of tight capacities at 8- and 12-inch foundry houses, downstream end-market device suppliers have been eager to build up inventory for IC parts, said the sources.
Article translated by Steve Shen
