Although Taiwan-based notebook manufacturers are expecting a 5-10% sequential rise in fourth-quarter 2010 shipments, related IC design houses, which have already entered their off season, are unable to prevent continual sales declines for the rest of the year. Global Mixed-mode Technology (GMT), Integrated Technology Express (ITE), Ene Technology and Sonix Technology are projecting 10-15% sequential decrease in revenues for the fourth quarter.

Sonix's October revenues bucked the trend and showed a sequential rise to NT$338 million (US$11.24 million) on a rebound of notebook webcam shipments and consumer IC products catching the tail end of the peak season prior to the year-end holidays. However, the company indicated that strong webcam chip orders will not be able to make up for consumer IC products entering the off season, and thus, fourth-quarter revenues will fall up to 20% sequentially.

After Ene and ITE both turned in substantial sales drops in October, looking at their orders for the rest of 2010, November and December results will likely end the sales contraction and show flat growth. This is an indication that clients' inventory levels are down to acceptable levels, and with strengthening tablet PC shipments, the companies notebook-related products are showing resilience to seasonal impact. However, orders for the first quarter of 2011 should maintain at current levels, with real shipment recovery not expected until after the middle of the second quarter.

Global Mixed-mode Technology (GMT) is forecasting further declines in revenues in the fourth quarter. Though notebook shipments have increased in the fourth quarter, procurement for related components was mostly completed in September. Current component inventories of notebook makers will be sufficient unless notebook orders and shipments top their most aggressive projections. GMT's fourth-quarter revenues are expected to contract more than 10% from the previous quarter.