IC suppliers expect orders to flow in August
Downstream clients are expected to step up their pace of orders between the end of July and early August as they are about to complete inventory clearance and begin preparing for new product roll-outs, according to sources at IC suppliers.
IC design houses and foundries have seen customer orders ramp up, and are gearing up for the upcoming peak season, said the sources.
In addition, seasonal demand in China has become a major contributor to IC sales, while demand in the US is less significant, the sources observed. Chipmakers are aware of the trend, and have to re-define when their “peak” season is, the sources said.
For the second half of 2015, chipmakers are most looking forward to meeting demand prior to China’s National Day holidays in early October rather than the back-to-school season in the US, the sources indicated. Demand for China’s “Double 11″ online shopping holiday is even more impressive than that for the year-end shopping season in Europe and the US, the sources said.