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MediaTek's July sales are up over 20 percent in comparison to June

TAIPEI -- MediaTek Inc. (聯發科), one of Taiwan's leading integrated circuit (IC) designers, said Thursday that its sales for July rose more than 20 percent from a month earlier, with market analysts attributing the growth to solid global demand for smartphone chips in the traditional peak season. In July, MediaTek posted NT$19.27 billion (US$642 million) in consolidated sales, up 22.69 percent from a year earlier, and also up 45.79 percent from a year earlier. The July figure was the second- highest for MediaTek, only trailing NT$19.33 billion recorded in May 2014.

In the first seven months, MediaTek's consolidated sales totaled NT$119.41 billion, up 69.45 percent from a year earlier.

However, the July sales growth failed to boost MediaTek shares in the local bourse Thursday, as investors were selling the stock to lock in their recent gains built based on hopes that MediaTek will benefit from peak season effects in the third quarter.

In an investor conference held last week, MediaTek President Hsieh Ching-jiang (謝清江) said that on the back of peak season effects, the IC designer's consolidated sales for the third quarter are expected to range between NT$56.8 billion and NT$61.2 billion, up 5 percent-13 percent from the second quarter's NT$54.13 billion, to a quarterly record high.

Hsieh said that in addition to strong demand for smartphone chips, MediaTek will benefit from rising demand for TV chips and storage device chips in the third quarter.

MediaTek has raised its forecast for smartphone chip shipments for 2014 to 350 million units from an earlier estimate of 300 million units. For the third quarter, the IC designer is expected to ship 90 million-100 million smartphone chips, up from 80 million-90 million units shipped in the second quarter.

Analysts said that with China's Oct. 1 National Day holiday approaching, high tech device vendors will be gearing up to build up their inventories in a bid to meet strong demand during the holiday period.

As a result, analysts said, MediaTek is likely to see sales for August and September continuing to grow, and the sales data for the two months could constantly hit fresh highs in the company's history.

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