Taiwan IC design houses see orders pull in from China
Cage Chao, Taipei; Jessie Shen, DIGITIMES
Taiwan-based IC design houses are expected to enjoy a particularly robust fourth-quarter 2020, thanks to a strong pull-in of short lead-time orders from their China-based clients, according to industry sources.
The short lead-time orders will likely persist through January 2021, said the sources, adding that there is a consensus among China’s upstream and downstream device makers that they should stockpile as many chips as possible amid the ongoing COVID-19 pandemic and trade tensions between the US and China.
Taiwan-based IC design services and IP providers, and suppliers of MOSFETs and fast-charging chips have expressed optimism about their sales performance in the fourth quarter.
Taiwan-based fast-charging chip providers have disclosed that their Chinese clients intend to build up inventory levels during the fourth quarter. Tight foundry capacities are another factor behind their inventory build-ups.
Tight capacities at foundries and rising foundry quotes have prompted China-based clients to step up their pace of orders, according to sources at Taiwan-based LCD driver IC firms who expect their fourth-quarter sales to likely outperform the prior quarter’s levels.
Foundries including TSMC, UMC and VIS have all seen their capacities booked up in the fourth quarter, according to sources at Taiwan’s first-tier IC design houses. The sources continued they have already been notified by the foundries to reserve production capacities in advance for deliveries next year.