IC testing company Thailin Semiconductor has estimated that revenues for the current quarter will increase at least 20% sequentially thanks to growing demand for LCD controller ICs, but the growth may not be able to offset losses from its memory testing segment.

Thailin general manager Lien-fa Cho said that the utilization rate of the company's logic IC testing business, which has a strong focus on panel-use controller ICs, has climbed to 70-80% on rising demand in the LCD panel market. Thailin's sales generated from its logic IC business now account for 45-50% of the company revenues, up from around 30% last year.

However, demand for memory testing has remained weak and losses from the segment may continue to put Thailin in the red in the second quarter of 2009.

Thailin posted its third straight quarterly loss in the first quarter of 2009, with the revenues going down 67% on year.

Cho is cautious about the memory market in the third quarter although some industry players believe demand is likely to pick up on the upcoming availability of Windows 7. Thailin has seen sales contribution from memory testing slide to 50% at present, down from around 70% in 2008.

Powerchip Semiconductor Corporation (PSC) is the biggest memory customer of Thailin, according to sources. The DRAM chipmaker, which earlier this year cut back its output significantly, has said it is slowly increasing production.

Cho also expressed concerns whether China's domestic spending on consumer electronics resulted from the government stimulus program is sustainable.

Rival UltraTera Corporation (UTC) expects revenues to grow 30% in the second quarter of 2009, according to the company. UTC said its overall utilization rate has risen to 70-80% from 50-60% for the first quarter, expecting to turn profitable in the current quarter.

By: DocMemory
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