TAIPEI–MediaTek Inc. (聯發科), one of Taiwan’s leading integrated circuit designers, said Friday that sales hit a fresh high in August, with market analysts attributing the growth to strong demand for smartphone chips from China.
Chinese smartphone brands moving to build up their inventories ahead of an expected buying spree during China’s Oct. 1 National Day holiday were behind MediaTek’s uptrend, which benefited from peak season effects.
In August, MediaTek posted NT$19.66 billion (US$655 million) in consolidated sales, up 2 percent from a month earlier, and also up 54.19 percent from a year earlier. The significant year-on-year growth reflected the completion of a merger with MStar Semiconductor Inc. in February.
In the first eight months of this year, MediaTek’s consolidated sales rose 67.11 percent from a year earlier to NT$139.07 billion, the company said.
In late July, the IC designer had forecast its consolidated sales for the third quarter could range between NT$56.8 billion and NT$61.2 billion, up 5-13 percent from the second quarter.
Judging from combined sales in July and August of NT$38.93 billion, the boost from demand in China could be enough to help it meet the forecast, analysts said.
MediaTek expects to ship between 90 million and 100 million smartphone chips in the third quarter, up from the 80-90 million recorded a quarter earlier.
For the whole of 2014, the IC designer’s smartphone chip shipments are forecast to hit 350 million units, an upward revision from an earlier estimate of 300 million units.
Sales to smartphone makers accounted for 55-60 percent of MediaTek’s total revenue last quarter.