Friday, July 24, 2009 2:06:39 AM
Don't listen to Bimbo. He has no clue how economic cycles work.
TSMC, UMC see good order visibility for networking, handset chips, sources say
24 July 2009]
Atheros, Realtek Semiconductor and Qualcomm have seen strong demand for networking and handset chips, driving order volumes at Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC), according to industry sources. Order visibility at both foundries has extended to the fourth quarter, the sources noted.
Additionally, UMC has offered price discounts, which is attracting more orders and helping the company maintain an over 80% utilization rate through October, added the sources.
Atheros has forecast a 15-20% revenue growth in the third quarter thanks to strong demand for Wi-Fi chips used in notebooks, netbooks, as well as portable consumer electronics products. Atheros has received orders from Intel, which is expected to benefit its foundry partner TSMC, indicated the sources.
Taiwan networking chip designer Realtek Semiconductor is also enjoying orders released by Intel, and the company's products are manufactured at both TSMC and UMC, the sources added.
Taiwan companies IC Plus, Davicom Semiconductor, TrendChip Technologies and Ralink Technology all have reported outstanding results for June and expect a strong growth momentum in the third quarter, the sources said.
In addition to the networking segment, Qualcomm and MediaTek are also optimistic about smartphone chip demand from emerging markets and will continue to increase orders to their foundry partners, added the sources
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