Taiwan-based IC design houses, particularly those specializing in smartphone-use chip solutions, are expected to post impressive sales results for March 2021, thanks to robust demand from Android-based smartphone makers, according to industry sources.
Instead of repeating their 2020 strategy of focusing on entry-level 5G models to ramp up market share, Chinese handset brands are now launching comprehensive lineups, including midrange and high-end models, to sustain shipment growth, said the sources.
The launch of mid-tier and premium 5G models has brought spec upgrades for handset hardware, spurring demand for Wi-Fi 6 chips, OLED panels, 3D and optical fingerprint sensors, and fast-charging interfaces, added the sources.
The offerings of chips and sensors for mid-tier and high-end 5G phones usually entail higher profits than those used by the entry-level ones, and therefore will create more profits for related IC vendors.
Some Taiwan-based IC firms, including MediaTek, Novatek Microelectronics, FocalTech Systems and Richwave Technology, are likely to see their March revenues hit record highs, bolstered by surging shipments to China-based handset makers.
Among them, MediaTek is likely to see its March revenues surpass NT$38 billion (US$1.33 billion) compared to NT$32.553 billion seen a month earlier, the source estimated.
MediaTek is also poised to see its revenues advance at least 10% sequentially in the second quarter of 2021 thanks to sufficient foundry support from TSMC and strong order pull-ins from its handset clients, said the sources.
LCD driver IC vendor Novatek is expected to post revenues of over NT$9 billion for March, bolstered by increased chip prices.
Fellow driver IC providers, including FocalTech, Himax Technologies, Fitipower Integrated Technology and Sitronix Technology, all are expected to garner strong sales in March, said the sources.
Article translated by Steve Shen
