Siliconware Precision Industries (SPIL) chairman Bough Lin has expressed optimism that demand for communications ICs will be strong in the second half of 2013 on the back of brisk sales of smartphones and other mobile communication devices.

　　Lin also reiterated his earlier prediction that the supply of high-end IC packaging would fall short of demand during the latter half of 2013, due to strong demand for smartphones particularly in the low- to mid-range.

　　SPIL's sales growth will outperform the industry average in the second half of 2013, said Lin, who identifies flip-chip (FC) and bumping packaging as key growth drivers for the company.

　　SPIL has announced that consolidated revenues for the second quarter of 2013 increased 27.4% sequentially to NT$17.6 billion (US$586.7 million). Gross margin climbed 6.3pp on quarter to 20.9%. The firm also swung to net profits of NT$1.74 million in the second quarter from losses of NT$292 million in the first.

　　SPIL's earnings for second-quarter 2013 translated into a net EPS of NT$0.56, the highest quarterly level in 14 months.

　　Looking forward, SPIL expects to maintain its gross margin at 20% and above in the second half of 2013 with revenues to rise further but at a modest rate.

　　SPIL expects to utilize 90-94% of its wire-bonding capacity in the third quarter of 2013, down from 98% in the second quarter. Meanwhile, utilization rates of its FC and bumping packaging will come to 78-82% from 80% in the prior quarter. As for logic IC testing, utilization rates will rise to 86-90% in the third quarter from 80% in the second.

　　The arrival of new production capacity will slightly drag down utilization rates of SPIL's wire-bonding and FC packaging in the third quarter, Lin indicated.

　　Lin previously disclosed that SPIL's overall production capacity for 2013 will rise 20-25% after its newly-installed production lines come online. SPIL has revised upward its capex budget for the year to NT$14.9 billion from the NT$11.3 billion set previously.