Shipments of handset solutions will drive revenue growth at MediaTek and MStar Semiconductor in the second half of 2012, and simultaneously buoy sales at their backend partners including Advanced Semiconductor Engineering (ASE), Siliconware Precision Industries (SPIL), Sigurd Microelectronics, King Yuan Electronics Company (KYEC) and STATS ChipPAC Taiwan Semiconductor.
MediaTek is expected to see significant growth in smartphone-IC shipments in the second half of 2012, according to market sources. The firm's recently-announced dual-core MT6577 processor has attracted orders from China-based brand-name companies including Huawei, ZTE and Lenovo, which are set to roll out new devices using the dual-core chip in the third quarter, the sources indicated.
The new MT6577 solution will play a key role in driving MediaTek's shipment growth during the second half of 2012, the sources believe. In the third quarter, MediaTek's overall handset-IC shipments are likely to top 30 million units driven by demand for its 3G solutions, the sources said.
Also buoyed by rising shipments of 3G as well as 2.75G solutions, MStar is forecast to ship 10 million handset ICs in the third quarter, according to the sources. Growth in the mid-range and high-end chip segment will allow MStar to expand its presence in the handset-IC market, the sources said.
Several packaging and testing firms have reported clearer order visibility for the third quarter, citing strong demand coming from the wireless communications sector.
Sigurd, which lands orders from MediaTek and MStar, will benefit most from both clients' rising shipments, the sources pointed out. KYEC is also expected to continue fulfilling orders for MediaTek's chips in the second half of the year while STATS ChipPAC Taiwan is another beneficiary of more demand from MediaTek, the sources said.
In other news, MediaTek's planned acquisition of MStar should have little impact on their existing relationships with backend service providers in the short term, the sources commented. It is unlikely to see the pair reshuffle their supply-chain partners until 2013, when some developments can be predicted, the sources said.
MediaTek recently announced plans to merge with MStar following the completion of its tender offer to buy a portion of MStar shares. MediaTek expects to complete the merger process in early 2013.
Article translated by Jessie Shen
