While The Telecom reports MediaTek is expected to have higher Q3 earnings based on strong demand from China, Bloomberg reports Nanya is expected to have a worse Q3 than expected. According to The Telecom:
Taiwan-based chip designer, MediaTek, today raised its estimate for third quarter sales growth to 22-25% because of high demand for handsets in emerging markets.
This is a significant jump from the previous estimated sales growth of 8-10%, with profit flatlining.
A statement released by the company said ‘better-than-expected’ mobile phone sales in emerging markets during July and August had caused its clients to increase September orders for cellphone chips.
Demand for mobile phones in China has been particularly strong, with 45% of the Chinese population now owning a mobile handset.
MediaTek is Taiwan’s biggest chip designer.
The company designs microchips for mobile handsets, DVD players, and digital televisions, then contracts out the manufacture of the chips to chip makers.
It is good new for MediaTek. However Taiwanese compatriat company Nanya is not doing so well. Bloomberg writes:
Nanya Technology Co., Taiwan's second-largest memory chipmaker, said its third-quarter loss will be worse than the company projected after a glut drove down semiconductor prices.
The loss will probably be similar to the deficit in the second quarter, Pai Pei-lin, vice president of the Taoyuan, Taiwan-based chipmaker, said in an interview today. Nanya, which posted a second-quarter loss of NT$7.29 billion ($226 million), is expected to report a third-quarter loss of NT$6.1 billion, according to the median analyst estimate compiled by Bloomberg.
The company will probably extend losses next quarter as the turmoil in global financial markets spills over to semiconductor demand, preventing chipmakers from selling their products at a profit, Pai said. Spot prices of the benchmark computer-memory chip have tumbled 35 percent in the past three months, according to DRAMeXchange Technology Inc. in Taipei.
Hopefully the memory industry can turn around soon. Companies there have been suffering for a longtime now.
The Telecom: MediaTek boosts Q3 sales projection
Bloomberg: Nanya Says Third-Quarter Loss to Be Worse Than Company Expected
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