Packaging and testing firm Powertech Technology expects its revenues to stay flat sequentially in the third quarter of 2011, with a possibility of low-single digit growth, according to company chairman DK Tsai.
Tsai noted that the chip industry's outlook for the third quarter in fact is not as optimistic as previously expected. Inventory issues might surface in July and August to affect companies' performance, Tsai said.
Upstream material shortages caused by Japan's March 11 earthquake have been eased thanks to fast recovery work by suppliers, Tsai observed. However, inventories are being raised at some chipmakers and system companies because of over-booking triggered by the previous undersupply concerns, Tsai pointed out.
Some chip suppliers and related component manufacturers have turned cautious about their sales growth in the third quarter, in part due to Apple's strong competitiveness against their system clients, Tsai indicated.
Apple's devices continue to play an important role in memory chip growth, Tsai noted. For mobile DRAM, for example, the segment's outlook this year will really depend on iPads and iPhones, followed by demand for HTC and Samsung devices, Tsai said.
PTI provides packaging and testing services for memory ICs such as NAND flash and mobile DRAM, which are seeing growing adoption among smartphones and tablets.
PTI reported better-than-expected results for its first-quarter performance. The company has estimated that consolidated revenues for the ongoing second quarter would increase 5-10% sequentially with a higher gross margin.