Taiwan's top-3 IC designers MediaTek, Novatek Microelectronics and Realtek Semiconductor are expected to enjoy strong shipment and revenue increases in the third quarter of 2019, as gradual easing of the US-China trade war has prompted clients to place increasing orders for new and mature chipset solutions since the start of July, according to industry sources.

Among them, MediaTek saw its June revenues soar past the NT$20 billion (US$644.28 million) again to reach NT$20.89 billion after surging 9% on month, mainly bolstered by the firm's volume production of new-generation handset chipsets with high unit prices and gross margin.

MediaTek's revenues for the second quarter shot up 16.77% sequentially to NT$61.56 billion, and market observers widely expect the firm's third-quarter revenues to pick up 8-13% on quarter to NT$65-70 billion as its shipments of new mobile SoCs will ramp up further in the peak season. In addition, MediaTek's product lines for IoT, smart home, network communication and ASICs are also expected to contribute more revenues to the company due to seasonality.

Meanwhile, Novatek and Realtek also managed to see their second-quarter revenues hit record quarterly highs despite their June revenues being dragged down by the US-China trade tensions. Novatek posted revenues of NT$16.30 billion for the second quarter, up 9.08% sequentially, and Realtek's revenues shot up 18.28% on quarter to NT$15.18 billion.

Both firms are poised to see their revenues surge to new highs in August and September thanks partly to better order visibility for the third quarter than the second quarter and partly to clients stepping up shipment pull-in to meet demand in the high season.

By: DocMemory
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