King Yuan Electronics Company (KYEC) expects to see a rebound in wafer probing orders starting the second quarter of 2013, as demand coming from the smartphone and tablet sectors picks up prior to the arrival of the peak season, according to CK Lee, chairman for the Taiwan-based wafer probing service company.

Wafer probing demand has slowed down since the first quarter of 2013, as the electronics industry enters its traditional slow season, said Lee. System vendors have been engaged in inventory adjustment, Lee added.

However, with seasonal demand picking up, KYEC expects to see its revenues rebound in the second quarter, Lee noted.

Seasonal factors already dragged down KYEC's revenues in the fourth quarter of 2012, which slipped 7.8% sequentially to NT$3.28 billion (US$112.9 million). Sales for the first quarter of 2013 will likely be affected by inventory checks at customers.

In other news, KYEC revealed that the company's in-house testers have now generated 15-20% of its revenues, and the proportion will climb further to 20-30% in 2013. With less expenditure on buying equipment, KYEC is able to lower production costs and improve its gross margin.