Taiwan-based IC and materials distributors are unlikely to see demand pick up until after the second quarter of 2019, according to industry sources.

Seasonality and disappointing sales of high-end smartphones have had a negative impact on revenues at IC distributors including WPG and Edom Technology thus far in the first quarter of 2019, the sources indicated.

However, these IC distributors are expected to see demand pick up after the second quarter with revenues set to rebound and grow through the end of 2019, the sources said. Demand for high performance computing devices and 5G related applications will be driving their mid- and long-term revenue growth, the sources added.

WPG has reported its cumulative 2019 revenues through February decreased 6.6% from a year earlier to NT$71.1 billion (US$2.3 billion), while revenues at Edom slipped 5.4% on year to NT$11.5 billion during the same period.

Fellow IC distributor WT Microelectronics saw its February revenues decline nearly 30% on month to NT$18.6 billion. WT Micro estimated previously revenues would fall 18-24% sequentially to NT$65-70 billion in the first quarter of 2019.

In addition, IC materials distributors Niching Industrial and Wahlee Industrial have both posted sequential decreases in February revenues of 23.3% and 28.6%, respectively.

By: DocMemory
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