Strong orders to keep FIH handset production running during long October holiday, say IC distributors

Foxconn International Holdings (FIH) will continue its production in China during the long National Day holiday in October, and therefore IC distributors have been rushing to fulfill FIH's handset components orders before China's customs offices close for the holiday, according to sources with Taiwan's IC distributors. The company did not confirm the sources' claims.

Demand for handset components are expected to peak in October and November as first-tier handset vendors, including Nokia, Apple, Samsung Electronics, LG Electronics (LGE), Research In Motion (RIM) and Sony Ericsson have launched or will launch several new models for the traditional hot season. In order to satisfy stronger demand from handset vendors, FIH has decided to work overtime during the holiday, the sources indicated.

FIH is currently rushing to fulfill orders for Apple iPhones and Nokia handsets, and its IC distributors are gearing up supply of CMOS image sensors, CPUs, small-size panels and memory products for the production, added the sources.

However, components supply remains tight because suppliers are still conservative about future outlook and are not willing to expand their capacity, the sources noted.

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