Shipments of IC parts to China by Taiwan-based IC suppliers have regained momentum following a slight pause after the May 1 holidays, according to industry sources in Taiwan.
The influx of pull-in orders from China indicates that sales of smartphone and tablets during the May 1 holiday season met market expectations and that mobile device vendors have begun to build up inventories for the traditional peak season in the third quarter, said the sources.
The replacement demand for smartphones in China is likely to continue to the third quarter of 2013 thanks in part due to continual subsidies offered by China-based telecom carriers, indicated the sources.
In addition to smartphones, demand for entry-level and mid-range tablets in China now exceeds 10 million units a month, highlighting active demand for related parts and components, said the sources.
While there are concerns of 'over-booking' or 'double-booking' of parts and components by China-based mobile device makers, the sources pointed out that the current supply of some key parts at first-tier smartphone vendors including ZTE, Huawei, Lenovo and Coolpad is actually falling short of demand by 20%.
Some Taiwan-based consumer, analog and LCD driver IC vendors are likely to see their May revenues climb higher than those recorded in April, and their second-quarter sales reach the high-end targets of their guidance, commented the sources.
Article translated by Steve Shen
