The display and DRAM industries have both hit bottom, and are likely to stage a rebound in 2013, according to Advantest Taiwan president CH Wu.

Upcoming roll-outs of new smart TVs, which are gaining in popularity, and the trend toward larger-size and higher-resolution TVs are set to spur demand for flat panels and drive growth in the display industry in 2013, said Wu.

An anticipated rise in overall TV demand - driven mainly by smart TVs and large-size Ultra HD (4Kx2K) models - will simultaneously create new demand for LCD driver ICs and controller chips, as well as testing demand for the related semiconductors, Wu indicated.

As for the DRAM industry, the momentum will come from PC replacement demand in the enterprise sector in 2013, Wu noted.

Meanwhile, the decrease in the number of suppliers has resulted in a recent rally in DRAM prices, Wu said. The market is set to recover from oversupply in 2013, Wu believes.

In addition, Wu revealed that smartphone vendors are currently focusing on inventory clearing. The adjustment process is expected to complete in one to two months, said Wu, adding that end-market demand will pick up afterwards encouraging system vendors to replenish chip inventory, and chipmakers to install new capacity later in 2013.

Advantest specializes in semiconductor test equipment, and its customers include fabless firms, IDMs, foundries and outsourced semiconductor assembly and test (OSAT) suppliers. Revenues generated from its Taiwan branch currently account for 20-25% of company revenues.