Taiwan-based MCU specialists are set to post sequential revenue increases of 30% or more for the second quarter of 2021, as clients have sustained strong shipment pull-ins after advancing order placements to secure sufficient supply amid worsening components shortages, according to industry sources.
MCU vendors including Elan Microelectronics, Holtek Semiconductor, Hycon Technology, Nuvoton Technology, Nyquest Technology, Sonix Technology and Weltrend Semiconductor are expected to log record revenues and profits for the second quarter after posting strong results for the first quarter, the sources said.
Many clients in Europe, the US and China started to place big orders with the MCU vendors before Lunar New Year in mid-February amid fears about shortages resulting from increasingly tight foundry and backend capacity supply. They used to do so following the end of Hong Kong's spring consumer electronics show in March, the sources noted.
MCU vendors have raised quotes by 10-15% in the first and second quarters to reflect increased foundry and backend costs, which, however, still cannot deter clients from placing more orders to secure more supply in the second quarter, the sources said, adding that most vendors have seen their capacity fully booked for the first half of the year.
As delivery lead times at backend partners have extended to 2-3 months from 2-3 weeks, MCU suppliers have to defer part of first-quarter shipments to the second quarter, which will boost their revenues and profits for the quarter, the sources continued.
It remains to be seen as to whether strong order placement momentum from clients will persist into the second half of the year, the sources said.
Article translated by Willis Ke
