IC testing houses expected sales growth as handset demand picking up
IC testing houses Sigurd Microelectronics and King Yuan Electronics Company (KYEC) will enjoy 20-30% sales growth sequentially in February, as demand for handsets is picking up as a result of the China government's stimulus push, market watchers have estimated.
The China government has launched a subsidy program to promote sales of home appliances, handsets and a number of electronics and computing products in rural areas. The attempt will help stimulate the region's domestic demand, while its exports are being hurt by the global recession.
Buoyed by rising radio frequency (RF) IC orders for handsets, Sigurd's February sales are expected to climb 30% sequentially, according to the watchers. The company's January sales slid 12.8% sequentially, as a result of less working days during the Lunar New Year holiday.
KYEC is estimated to record a 20% revenue growth sequentially in February, thanks to stronger handset demand, said the watchers. Its major handset chip clients include MediaTek and Qualcomm. Meanwhile, the company has also landed increasing orders for LCD driver ICs from Novatek Microelectronics and Sitronix Technology, the watchers added.
In related news, Sigurd swung to a loss in the fourth quarter of 2008, though the company managed to remain profitable from its core business. For 2008, Sigurd generated sales of NT$3.62 billion (US$103 million) and NT$435 million in profits.
The China government has launched a subsidy program to promote sales of home appliances, handsets and a number of electronics and computing products in rural areas. The attempt will help stimulate the region's domestic demand, while its exports are being hurt by the global recession.
Buoyed by rising radio frequency (RF) IC orders for handsets, Sigurd's February sales are expected to climb 30% sequentially, according to the watchers. The company's January sales slid 12.8% sequentially, as a result of less working days during the Lunar New Year holiday.
KYEC is estimated to record a 20% revenue growth sequentially in February, thanks to stronger handset demand, said the watchers. Its major handset chip clients include MediaTek and Qualcomm. Meanwhile, the company has also landed increasing orders for LCD driver ICs from Novatek Microelectronics and Sitronix Technology, the watchers added.
In related news, Sigurd swung to a loss in the fourth quarter of 2008, though the company managed to remain profitable from its core business. For 2008, Sigurd generated sales of NT$3.62 billion (US$103 million) and NT$435 million in profits.
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