Major Taiwan-based IC packaging and testing houses including Advanced Semiconductor Engineering (ASE), Siliconware Precision Industries (SPIL), Powertech Technology (PTI) and Chipbond Technology are all expected to post sales growth more than 5% sequentially in the second quarter of 2012, judging from their sales performance thus far in the quarter, according to market observers.

Memory backend specialists PTI and Chipbond, providing backend services for mainly LCD driver ICs, have both reported sequential increases in their May sales. ASE and SPIL have also reported increases in May sales.

Including sales generated by subsidiary Greatek Electronics, consolidated revenues at PTI saw a 6% sequential rise to NT$3.97 billion (US$133 million). Sales of PTI's core business, however, slipped 2% on month to NT$2.26 billion.

PTI has reiterated the company's move to reduce its focus on memory products while expanding its offerings for logic ICs. Investing in Greatek, whose business is focused on entry-level and mid-range semiconductor packaging and testing, was to support its diversification efforts.

PTI's core operation is likely to generate flat revenue growth sequentially in the second quarter, the observers indicated. Combining Greatek's revenues will allow PTI to enjoy more than 30% sequential growth in second-quarter consolidated revenues, beating its targeted 20-25% growth range, the observers said.

Driver-IC packaging and testing specialist Chipbond announced May consolidated revenues of NT$1.25 billion, up about 3% on month. Consolidated sales for the second quarter are set to grow 10% sequentially driven by rising sales of products for small-size panel applications, the observers indicated.

IC packagers ASE and SPIL both saw their May revenues register single-digit growth. The pair is likely to report satisfying second-quarter results which would come in line with their guidance, the observers believe.

SPIL has estimated second-quarter consolidated sales would increase 7-10% sequentially, while ASE expects its core business to generate a 15% sequential rise in second-quarter shipments.

Market observers, however, expressed caution about those companies' sales for the second half of 2012. Macroeconomic factors such as Europe's ongoing debt crisis, continued sluggish demand in Europe and the US and demand slowdown in emerging markets might have negative impact on their performance resulting in a particularly weak second half, the observers noted.