Chinese New Year's Eve Single-chip IC Design Has Good News in November

Since the end of January 2012 is the Chinese Lunar New Year holiday, and mainland customers have begun to prepare for the sales season inventory, starting from the beginning of November 2011, the order volume from the mainland market is showing a trend of increasing week by week, which makes the proportion of the business and the mainland market. High-relevance mobile phone chip suppliers such as MediaTek, Morningstar, and small and medium-sized LCD driver IC suppliers such as Qijing, Haoli, and Chuangchuang, have been optimistic that revenue figures in November may have an adverse trend higher than that in October, or It is only a slight decline. After the order visibility in December still looks similar to November, the related Taiwanese IC design industry's fourth quarter revenue will be flat compared to the third quarter.

Taiwan-based IC designers stated that the recent relatively positive attitude of mainland customers placing orders is probably related to two things. First, the demand for the 11-day holiday in the mainland is not bad, and many smartphones and tablet PCs are out of stock. The relevant customers were particularly confident in the sales season of the Chinese Lunar New Year in 2012, and a lot of inventory was pre-built in advance.

Second, after the Chinese Lunar New Year in 2011, there was a considerable wave of labor shortages in the coastal processing areas, that is, migrant workers returning home for the New Year did not return to work. The mainland inland economy continued to grow, while the coastal cities still did not solve the problem of inflation. Next, worry about the lack of pressure to reproduce the labor wave in early 2012, and force mainland customers to build more inventory.

For the Chinese Lunar New Year sales season at the end of January 2012, distribution must be completed before mid-January, so mainland customers have recently begun to place orders for parts and components, which are still due to smart phones and tablet PCs! It is the main selling product in the mainland market. The visibility of customer orders is longer and stronger. Taiwan-based IC design companies that have caused almost no shortage of food in Europe and the United States are among the first to feel a hint of warmth in the midst of the booming winter. The correlation between the business and the mainland market is even greater. High Taiwan-based wafer suppliers have stronger confidence in performance insulation in November and December 2011.

Recently, MediaTek, which sells 3G mobile phones and smartphone-like chips, has estimated that its revenue for November 2011 will rise by more than 10% from NT$7,532 million in October. Its December performance will also remain at its peak in November. It is not difficult for the fourth quarter revenue to maintain its goal of equal performance over the third quarter.

Morningstar also warmed its shipments of TV chips, and due to the low base period of the handset chip product line, shipments continued to grow at a high level. In November, the company’s performance also had the opportunity to maintain its revenue performance of 3.394 billion yuan in October, and even appeared. Slightly into the order strength. As for other small and medium sized LCD driver IC suppliers that are highly related to the mainland brands and the white-brand mobile phone market, the initial performance in November was also a very limited decline.

Taiwanese IC design industry officials said that in the short term due to European debt issues, European and American customer orders have long since frozen. Fortunately, in the Chinese mainland next year, the Chinese New Year holiday season orders and blessings, the company's fourth quarter 2011 performance has a hint of warmth.

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