IC testing and packaging company Siliconware Precision Industries (SPIL) is expected to perform better than its guidance set for the first quarter of 2014 as clients are building up inventories for the upcoming peak season, according to industry sources.

　　SPIL forecast earlier that its revenues for the first quarter to decrease 4-8% sequentially to NT$17.34-18.09 billion (US$573.74-598.55 million) with a gross margin of 19-20.5%.

　　SPIL's major clients including Qualcomm, MediaTek, Broadcom, Marvell Technology and Spreadtrum Communications have all ramped up their orders recently as most handset vendors are ready to release new models for the second quarter, said the sources.

　　Strong sales of MediaTek's 8-core solutions will benefit related IC backend service companies, added the sources.

　　SPIL posted revenues of NT$5.57 billion for February, down 7.5% sequentially but up 31.1% on year. For the first two months of 2014, revenues amounted to NT$11.6 billion, increasing 31% from a year earlier.

　　SPIL is also expected to increase its capex set for 2014, according to the company. The company previously set the 2014 capex budget at NT$9.4 billion.