IC designers placing additional foundry orders in anticipation of 3Q19 boom

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Taipei, May. 08, 2019 – 

Taiwan IC designers are now moving to place additional orders with foundry houses and thicken their inventories lest they should suffer insufficient foundry capacity support in the traditional high season starting the third quarter, according to industry sources.

The move indicates that market demand in the second half of 2019 may pick up at a faster pace than expected as IC designers usually serve as a leading indicator for business prospects thanks to higher flexibility in adapting to market conditions, the sources said.

With better-than-expected results in the low season in first-half 2019, IC designers are seeing bright shipment prospects amid expected spec upgrades for AI and 5G applications and replacement demand for terminal devices in the second half of the year, prompting them to increase foundry orders in advance.

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