Low-end mobile phone orders cold IC design recovery expectation Q2

The demand of the global middle- and low-end mobile phone market has been sluggish since the fourth quarter of 2010, leading to the continuous decline in the operating performance of related wafer suppliers. Although the component supply chain originally expects the relevant market demand to recover in early 2011, the Chinese Lunar New Year will be frustrated. Before pulling goods and buying goods after renewal were not as expected, coupled with recent turmoil in the emerging markets, letting some orders wait and see. According to Taiwanese IC designers, according to the order visibility in February and March, customers are still rehabilitating and it is expected that mid- and low-end mobile phone orders will be able to recover effectively and they will wait until the traditional peak season effect in the second quarter.

The IC design industry is closely related to the global market demand for middle- and low-end mobile phones, including MediaTek, Lianhe, Chuangchuang, Haoli, Xuyi and Maoda. Since the fourth quarter of 2010, the monthly performance has dropped significantly. 2011 In the first quarter, it was still hovering in the low range. The poor performance of the related IC design industry was mainly due to the weak demand in the domestic cottage market and the shrinking output value of the middle and low-end markets worldwide. Still not strong, the relevant IC design industry's initial estimate of performance will have to wait until the second quarter.

Taiwan-based IC designers stated that at the beginning of 2011, China’s cottage customers waited for price reductions for wafers, causing demand to be less than expected. However, MediaTek and Spreadtrum decided that there was no room for further price discounts, and the client did not cover up the inventory and let IC The design industry is somewhat surprised that the preliminary judgment of the global low-end mobile phone market demand is still in the doldrums, as is the brand! Are mobile phone manufacturers or smart phones erode their market share, or are emerging market demand cooling? A will only know the reason after some time.

At present, it can be ascertained that customers of medium- and low-end mobile phones and cottage machines are very concerned about the cost issue. Since the profit margin of each medium- and low-end mobile phone and even the copycat products may already fall within the single-digit dollar, therefore, Any increase in the cost of procurement of spare parts or the increase in the number of inventory turnaround days is a huge operational pressure for various mobile phone manufacturers. As a result, customers have always stopped, watched and listened since the second half of 2010. There are almost no mid- to long-term orders. All of them are responding to market conditions with short orders and urgent orders, forcing Taiwanese IC design companies to blur their outlook for follow-up operations.

Taiwan IC design industry, said that due to customer insufficiency in buying back up inventory, has been determined in February ordinary revenue performance, and order visibility in March appears to be still low-grade embarrassing situation, MediaTek has admitted that operating performance in the first quarter may be in the new Taiwan's low value of 19.5 billion to 21 billion yuan in the vicinity of the low, in the first quarter of the customer's demand for the global low-end mobile phone market is still a conservative view, the performance of the relevant parts and components orders may be lackluster. However, after the traditional peak season effect fermentation in the second quarter, the brand customer orders are withdrawn, and the related parts and components orders will be expected to show a breakthrough performance at the end of the year, which will help Taiwan-related IC design industry operators to warm up.