LCD driver IC firms 3Q11 sales to grow 10%

Taiwan-based TFT LCD driver IC firms are expected to post around 10% sequential revenue growth in the third quarter of 2011, buoyed by demand for small-size driver ICs from the handset sector, according to industry sources.

Sales of small-size driver ICs will outperform those of large-size devices in the third quarter as slower-than-expected LCD TV sales have constrained demand for large-size parts, the sources indicated.

Sitronix Technology revealed that sales of small-size driver ICs have been strong recently with momentum to be further strengthened in the August-September period due to demand from handset makers in China as well as from branded handset vendors.

Additionally, touch controller ICs also served as growth drivers for Sitronix recently. The company shipped over one million touch controller ICs in the second quarter of 2011, up from 300,000 units shipped in the first, the company noted.

However, Sitronix is expected to see its revenues grow by single-digits in the third quarter due to declining sales of color-STN driver ships, said industry sources.

Novatek Microelectronics will see its revenues expand 5-10% sequentially in the third quarter, driven by increasing sales of small-size driver ICs, the sources added.