Bluefin's Q2 Semiconductor Supplier Forecasts Up 14%

Q2 looks to be shaping up to be a strong one for semiconductor suppliers. According to checks done by Bluefin Research, Taiwan Semiconductor Mfg. Co. Ltd. (ADR) TSM supplier demand is on track to rise 14 percent sequentially in Q2 and another 3.0 percent sequentially in Q3.

“The steep ramp in 16nm production accounts for more than half of the overall sequential production increase, according to our research,” the firm noted.

The 14 percent Q2 growth forecast is up 1.0 percent from expectations at the beginning of the quarter. Bluefin reported the Q2 upside is being driven by Advanced Micro Devices, Inc. AMD, MediaTek, Xilinx, Inc. XLNX and HiSilicon.

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Bluefin noted that mid-range and low-end smartphone supplier strength is no surprise. The firm had predicted strength in both markets in China this quarter.

The firm attributes AMD’s strong numbers to an improvement to 28nm and 16nm production forecasts. The strength in 28nm is in-line with Bluefin’s call for a modestly improving PC market, and the 16nm strength is part of the company’s strategy to be more competitive on advanced process nodes.

Bluefin sees Xilinx’s Q2 strength as much less bullish, as Q3 checks indicate that Q2 strength may simply be the result of the company shifting business forward from Q3.

Disclosure: The author holds no position in the stocks mentioned.