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Taiwan LCD driver IC firms positive about 3Q16

Release time:2016-07-21 12:09  READ: time

Taiwan-based LCD driver IC firms are optimistic about their performance during the third quarter of 2016 judging from a pull-in of short lead-time orders for large-size panel applications as well as strong orders for small-size panels, according to industry sources.

Short lead-time orders coming from the TV, notebook and LCD monitor sectors have started to pull in, while orders for small- and medium-size panels are set to further increase thanks to the arrival of new smartphones, said the sources.

Companies including Novatek Microelectronics, Himax Technologies, FocalTech Systems, ILI Technology (Ilitek), Fitipower Integrated Technology, Sitronix Technology and UltraChip have all increased orders to their foundry partners suggesting a strong third quarter, the sources indicated.

Strong orders for entry-level and mid-range smartphones already boosted small-size panel driver IC specialists' revenues during the second quarter with more than 20% sequential growth, the sources noted. With demand for large-size panel applications also picking up, revenues at many LCD driver IC firms are expected to register double-digit sequential growth in the third quarter, the sources said.

In other news, both Novatek and Himax managed to have their second-quarter revenues meet the guidance given in early May.

Novatek reported consolidated revenues of NT$11.44 billion (US$355.6 million) for the second quarter of 2016, up 4.9% sequentially. The results came within the company's estimate of 4-8% sequential growth.

Nasdaq-listed Himax posted revenues of US$201.1 million in the second quarter, up 11.5% on quarter that met the high end of the company's growth estimate of 7.5-12.5%. Growth was driven by strong sales of Himax' small- and medium-size display driver ICs, the company said.


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