Most LCD driver IC vendors are expected to see their third-quarter revenues stay flat or decline slightly from the levels posted in the previous quarter due to a slow recovery in orders from the smartphone and tablet sectors, according to industry sources.
First-tier vendors Novatek Microelectronics and Himax both are conservative about the prospects for the third quarter, citing lackluster demand for large-size driver ICs.
Orise Technology, which accounts for roughly 60% of the small- to medium-size driver IC market in China, is likely to see its revenues slip in a range of 20% in the third quarter due to inventory checks at clients, revealed the sources.
Additionally, Novatek and Orise will see the gross margins of their small- and medium-size driver ICs slide down due to fast declining prices of WVGA driver ICs caused by keen competition, the sources added.
While ILI Technology (Ilitek) is expected to see its revenues stay flat in the third quarter, the company's gross margin will stage a rebound in the quarter, thanks to increasing shipments of HVGA driver ICs, said the sources.
