Quartz component makers TXC, Siward Crystal Technology and Taitien Electrics are expected to see their revenues reach new highs in September 2010, thanks to strong demand from the smartphone and networking sectors, according to market watchers.

Meanwhile, due to concerns over rising production costs, Japan-based network equipment vendors are reportedly seeking component suppliers outside Japan, and industry sources indicated that Taitien will benefit from the trend.

TXC is expected to see its revenues hit an historic high for the third consecutive month, to reach NT$850 million (US$27.21 million) in September, the sources estimated. TXC's third-quarter revenues are likely to top NT$2.5 billion, also the company's highest quarterly figures.

Siward's September revenues are expected to be on par with the level recorded in August, with overall third-quarter revenues increasing 15% sequentially from the previous quarter, said the company.

With crystal oscillators accounting for 60% of Siward's total revenues, Siward is expected to see its gross margin improve to 20-21% in the third quarter compared to 18% in the second.

However, Siward expects its revenues to decline sequentially in October before bouncing back in November and December.