MediaTek is expected to give a modest revenue growth outlook for the third quarter of 2018, as chip demand for handsets has been less optimistic, according to industry sources.

MediaTek is scheduled to hold its quarterly investors meeting on July 31.

MediaTek has reported revenues surged 21.8% sequentially to NT$60.48 billion (US$1.99 billion) in the second quarter of 2018, which topped the company's guidance given previously of NT$55.6-59.6 billion.

Market watchers credited the company's positive sales performance in the second quarter to the adoption of its AI capable mobile SoCs by a number of China-based smartphone vendors including Xiaomi, Oppo and Vivo.

Nevertheless, MediaTek has seen orders placed by its handset customers for the fourth quarter remain slow, according to industry sources. The escalating China-US trade spats have also brought impact to MediaTek's order visibility for the rest of 2018, the sources said.

As for MediaTek's non-handset chip lines, the company's shipments for voice assistant devices, TVs and IoT products are expected to enjoy a seasonal pick-up in the third quarter, the sources noted.