LCD driver IC vendors expect demand to pick up in the second half of October when downstream small LCD module makers will begin to replenish their component inventories, according to industry sources.
Sales of white-box and entry-level smartphones in China in the second half of the third quarter were affected by the roll-out of the Red Rice smartphone by Xiaomi Technology, undermining demand for driver ICs, said the sources.
Due to slack demand, LCD driver IC vendors ILi Technology (Ilitek) and Orise Technology saw their revenues tumble 20% and 13% on quarter to NT$2.32 billion (US$79.02 million) and NT$2.37 billion, respectively, in the third quarter of 2013, according to company data.
Other driver IC suppliers including Novatek Microelectronics, Himax Technology and Raydium Semiconductor also experienced a setback in sales of small-size LCD driver ICs in the third quarter, the sources added.
The replenishment demand for the year-end holiday season and demand for qHD and HD720 driver ICs may support sales growth in the fourth quarter, said sources, adding that demand for medium-size driver ICs from the tablet sector may also pick up in the fourth quarter.
