Taiwan-based IC component distributors WPG Holdings and WT Microelectronics are likely to achieve their third-quarter revenue targets, as rising sales of products for smartphones offset weaker-than-expect demand from the PC sector, according to market watchers.

WPG has responded saying demand has picked up since July, and sales to China and other emerging markets are being driven by seasonal effects. In addition, the company added new product lines, such as solar-grade silicon wafers, that have started bringing in solid contribution to its revenues.

WPG estimates its consolidated revenues for the third quarter will be NT$66-69 billion, up 5.7-10.5% on quarter. Gross margin and operating profit margin for the quarter are predicted to reach 5.6-5.8% and 2.6-2.8%, respectively.

Fellow IC distributor WT Micro expects its third-quarter revenues to post 5-10% growth sequentially, with gross margins to remain flat at 6.22%.