IC testing service provider King Yuan Electronics Company (KYEC) expects its revenues to remain unchanged or slightly rise sequentially in the third quarter of 2011, but then drop in the fourth quarter. Revenues for the first quarter of 2012 are likely to see another sequential decrease affected by fewer working days, according to the company.
KYEC remains cautious about the outlook for the rest of 2011 and the beginning of 2012 due to the impact of inventory correction in the supply chain and sluggish end-market demand, the company indicated.
KYEC previously remarked that the semiconductor market would go through a particularly weak second half of 2011 as global economic uncertainties are discouraging consumer spending.
KYEC estimated that the overall semiconductor industry will see a 5% sequential decline in the second half of 2011, and flat growth for all of the year. It previously predicted the sector would rise 7% in the second half of 2011, from the first half.
However, KYEC believes that the market will return to its traditional seasonal cycle starting the second quarter of 2012, with the peak season to take place in the third quarter, Wang indicated.