07.03.2001
IC design houses report: Sweet and sour

• Development: VIA & SiS reported June revenues of NT$2,024m and NT$605m respectively, representing a 25% MoM decline. Sunplus, on the other hand, beat market expectations by NT$20m and with revenue of NT$610m, up 15% mom.

• Analysis: Poor performance of core logic chipsets designers is due to weak seasonal PC demand, which is expected to last until end-3Q01. Sunplus, however, is expected to report ongoing MoM revenue growth, driven by a seasonal up-tick in consumer product demand.

• Primasia View: We remain concerned about performance in 2H01, for both PC related and consumer IC design houses, as visibility remains weak. We maintain our recommendation for VIA and Sunplus based on their strong long-term outlook.

AngelLo@Primasia.com +886-[0]2-2547-8865