Demand for smartphone-, tablet- and other mobile device-related chips is unlikely to gain any momentum until the end of March or early April when clients start placing short-lead time orders to support the launches of their new models for the second quarter, according to sources at Taiwan-based IC design houses.

Sources at Taiwan's first-tier IC design companies indicated that customers are holding relatively low inventory levels compared to those they had at the end of 2015. Nevertheless, customers are still reluctant to place orders during the current off season, the sources said.

Sources at LCD driver IC frims noted that a pull-in of orders from their smartphone customers has not emerged, while sources at analog IC suppliers indicated seasonality has discouraged their PC clients from raising inventory levels.

The general consensus is that a pull-in of short lead-time orders will start emerging between March and April, as a number of new mobile devices are set for launch in the second quarter followed by peak-season demand in the third quarter.

By: DocMemory
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