An influx of short lead-time orders for handset-related applications is expected to emerge in the first quarter of 2016, said Siliconware Precision Industries (SPIL) chairman Bough Lin said during an October 27 investors conference.

Companies continue to work off a glut of chip inventory in the fourth quarter of 2015, Lin noted. Nevertheless, such a situation is expected to improve in the first quarter of 2016, when demand is typically strong due to the Lunar New Year holidays, Lin said.

Weaker-than-expected sales of TVs and handsets have prompted market research firms to downgrade their outlook for the 2015 semiconductor market to negative, Lin indicated. And the outlook for 2016 is still conservative, Lin added.

SPIL estimated it would post revenues of between NT$18.8 billion (US$580 million) and NT$20 billion in the fourth quarter of 2015, down up to 6% on quarter, with gross margin reaching 23-25% similar to the prior quarter's level, Lin disclosed.

SPIL expects to utilize 70-74% of its wire-bonding capacity in the fourth quarter, compared with 74% in the third. Meanwhile, utilization rates of its flip-chip (FC) and bumping packaging, and logic IC testing will slide to 66-70% and 60-64%, respectively, from 70% and 64% in the prior quarter.

SPIL's sales generated from the communications, PC, consumer electronics and memory segments all decreased in the third quarter compared to the second quarter, Lin indicated. For the fourth quarter, sales from all these segments will continue to fall but only slightly, Lin said.