TFT-LCD driver IC company ILI Technology (Ilitek) expects March revenues to increase sequentially and also exceed January levels thanks to the China handset market entering the high season, according to industry sources.

Ilitek will begin shipping large-size driver IC products and its shipments to branded handset vendors will see improvements as well.

While the 2011 first-quarter revenues are expected to stay flat from the previous quarter, the company is likely to post a double-digit sequential revenue gain in the second quarter due to shipments of new touch controllers to the handset and tablet segments, the sources noted.

Fellow driver IC company Sitronix is also expected to post sequential revenue growth for March thanks to more work days for the month. However, first-quarter revenues are likely to drop 15% sequentially due to decreased shipments of color-STN controller chips.