Taiwan-based IC design houses have expressed caution about their sales performance in the third quarter, as order visibility for the quarter remains unclear, according to industry sources.

Most Taiwan-based IC design houses have posted impressive revenue results for March, and are expected to see the momentum carry on through the first half of the second quarter, said the sources. However, the visibility of customer orders remains weak for the second half of the second quarter, which may drag down the fabless chipmakers' revenues during the period, the sources indicated.

Many Taiwan-based fabless firms saw their March revenues increase substantially on month, thanks mainly to recovery in labor return rates and factory utilization in China, the sources said.

For suppliers specializing in healthcare MCUs, including Holtek Semiconductor and Sonix Technology, and those engaged in the supply chain of commercial and educational notebooks, such as ASMedia Technology, Elan Microelectronics, Global Mixed-mode Technology (GMT), Novatek Microelectronics, Parade Technologies, Realtek Semiconductor and Richtek Technology, their revenues for March 2020 were relatively strong driven partly by the demand side, the sources continued.

With end-market demand uncertainty emerging and consumer confidence weakening amid the coronavirus pandemic, which has spread to Europe and the US, many Taiwan-based IC design houses have started seeing a slowdown in customer orders, the sources noted. The fabless chipmakers' order visibility for the third quarter has been sluggish, the sources said.

A Taiwanese first-tier chipmaker has noted that revenues will begin to drop in the latter half of the second quarter, and are cautious about their outlook for the third quarter. Nevertheless, if the epidemic is brought under control, a turnaround in customer demand may take place later in the third quarter, the firm said.

By: DocMemory
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