Siliconware Precision Industries' (SPIL) capacity utilization rate for the second quarter of 2016 will rise from the first quarter, with some of its production lines, mainly those for flip-chip (FC) and wire-bonding packaging, expected to run at nearly full capacity in May, company chairman Bough Lin said at an April 28 investors meeting.

SPIL should post a better third quarter, but the company tends to be cautious about its outlook, Lin indicated. SPIL's first-quarter performance should have hit bottom for 2016, Lin added.

SPIL's sales generated from the communications market will register sequential growth in the second quarter, while those from the PC segment will rise slightly, Lin said. Shipments to one to two Asia-based handset chip clients have been brisk in the second quarter, buoyed by rising shipments of their 4G LTE models, Lin noted.

Lin also forecast that the global semiconductor market will stage a modest rebound in 2016. The semiconductor market for 2016 has thus far experienced sluggish growth, but a rebound is expected to take place starting the middle of the year, Lin said.

Despite decelerating growth of the market, smartphones will remain a key growth driver of the semiconductor market in 2016, Lin indicated. Growth of the smartphone market will slow to high single digits, but will help the semiconductor market stage a modest rebound in 2016, Lin said.

The IC packaging and testing sector is expected to rise 7-8% in 2016, according to Lin.