Wafer probing service companies King Yuan Electronics Company (KYEC) and Ardentec will see better than expected revenues in the first quarter of 2011 despite the period being the off season largely on the strength of increased orders from IDM clients.

KYEC was affected by clients adjusting inventory in the fourth quarter of 2010, but sales have bottomed out and the company expects flat revenue growth to a 5% decline in the first quarter. Demand will gradually pick up with the third quarter projected to be the peak of 2011.

KYEC is bullish on the LCD driver IC, handset chip, CIS and SoC segments and is conservative about the memory market.

Ardentec is seeing strong demand from smartphone and communication applications and businesses from memory clients is quite weak at the moment. Due to fewer working days, February results could be down slightly, but sales will begin to rebound in March. First-quarter revenues will likely dip 5% sequentially.

Ardentec expanded capacity in both Taiwan and Singapore in 2010. In Singapore, it increased cleanroom capacity by 50%, and the new facility in Hsinchu, Taiwan will commence volume production in 2011.