Visibility of chip orders slips
Order visibility for NFC chips, power amplifiers (PA) and optical communication solutions has slipped due to sluggish demand for handsets, tablets, notebooks and LCD TVs, according to industry sources. The supply of those chips were actually tight in the second quarter, said the sources.
Shipments of PAs for Android phones have been weak, the sources indicated.
NFC chipmakers have seen their clients overstock previously, and anticipate shipments will slow down in the third quarter, the sources said.
It was a seller’s market for both PA suppliers and NFC chip providers in the first half of 2015, but the chip firms have recently started to experience a cutback of orders from second-tier and small-scale handset brand companies, according to sources from China’s handset industry.
As for optical communication solutions, supply was previously short of demand by about 10%, industry sources noted. However, the sector is set to reach a supply-demand balance by the end of the third quarter – earlier than the chip providers had expected – due to a slowdown in demand, the sources noted.