Demand for handset chips is slowing down in China affecting sales at MediaTek and Ilitek, according to industry sources.
MediaTek and Ilitek both saw their November sales hit the lowest levels in five months, reflecting a slowdown in demand from China's handset market, said the sources. There has also been speculation that smartphone vendors have high inventory levels at present.
Major Taiwan-based IC design houses enjoyed strong shipments of handset chips and LCD driver ICs in the third quarter, due mainly to the fact that some smartphone vendors pulled in orders for the chips amid tight production capacities at foundry houses, the sources noted. However, end-market demand has been a disappointment hurting many of the chip suppliers' shipments for the fourth quarter, the sources said.
Nevertheless, demand from smartphone vendors particularly Android device manufacturers is expected to pick up ahead of the Consumer Electronics Show in early 2015, the sources indicated.
