GaAs foundry Advanced Wireless Semiconductor Company (AWSC) is expected to enjoy sequential revenue increases through June, and will see further revenue growth after new production capacity comes online in the third quarter at the earliest, according to industry sources.
The company's April revenues increased 0.8% sequentially and 35% on year reaching NT$374 million (US$13.36 million), mainly driven by increased shipments of 4G/5G PA and Wi-Fi 6 PA components. Its monthly revenues are estimated to grow further to NT$400 million in May and June.
AWSC's monthly PA capacity, now at 12,000 wafers, is expected to expand to 15,000 in early third-quarter before growing further to 20,000 pieces by the end of 2021.
The company now still focuses more on production of 4G PA components to meet strong demand from China, where IoT transmission specs are upgraded from NB-IoT to 4G Cat. 1, prompting Chinese chipmakers to release contract production orders for 4G PA chips to AWSC, the sources said.
AWSC is also expected to land more contract production orders for handset-use 5G PA devices from a US IDM now in the supply chain of iPhones, as the IDM is seeing insufficient in-house inventory and has to outsource more GaAs foundry business, the sources noted.