Taiwan-based quartz component makers including TXC, Harmony Electronics and Siward Crystal Technology expect their revenues for the first quarter of 2011 to remain flat or drop by a single-digit rate sequentially, thanks to stronger-than-expected demand coming from the handset and notebook sectors.

TXC expects its revenues in the first-quarter of 2011 to drop 8% sequentially due to a high base in the fourth quarter of 2010, while Siward and Harmony's first-quarter revenues are expected to decline 0-5% on quarter, according to industry sources.

TXC is expected to see its consolidated revenues hit a record high of NT$2.6 billion (US$87.13 million) in the fourth quarter, according to an estimate of industry sources. Overall, TXC is likely to post revenues of NT$9.5-9.6 billion for all of 2010, an increase of 25% from a year earlier.

Despite a projected setback in revenues in the fourth quarter of 2010, Harmony is expected to see its revenues grow by 15% on year in 2011 as the company's new capacity is scheduled to come online in the second half of 2011. The new plant, which is located in Suzhou, China, will focus on the production of quartz components in 3225, 2520 and 2016 sizes, said industry sources.

Harmony also expects its capex to top NT$200 million in 2011.