Most first-tier analog IC designers, including Richtek Technology and Global Mixed-code Technology (GMT), expect their gross margins to slip lower in the second quarter of 2011 due to the appreciation of the NT dollar.

Richtek expects its second-quarter gross margin to hover around 35-38%, flat or down slightly from 37.4% recorded in the first quarter, as revenues are likely to reach NT$2.6-2.9 billion (US$90.35-100.77 million) compared to NT$2.64 billion during the same period.

Richtek also reported revenues of NT$953 million for April, increasing 8.73% sequentially.

GMT expects its gross margin to maintain at around 30% in the second quarter, after the margin fell to 31.1% in the first quarter from 31.7% a quarter earlier. But some industry sources doubt if GMT can reach the projected gross margin.

GMT saw its revenues drop 1.8% on month but up 3.2% on year to NT$476.13 million for April, the company's second highest monthly figures. But the company declined to comment on the outlook for the second quarter.