MStar Semiconductor expects its consolidated revenues to decrease 8-13% sequentially in the first quarter of 2012, citing low seasonal demand. But sales for all of the year should see another positive growth driven by brisk shipments to the TV and wireless sectors, according to company chairman Wayne Liang.

MStar generated consolidated revenues of NT$9.8 billion (US$325 million) in the fourth quarter of 2011, up 5.1% on month and 20.6% from a year ago. Net profits for the quarter grew 2.8% sequentially and 6% on year to NT$1.66 billion. EPS for the quarter came to NT$3.14.

MStar's consolidated sales for all of 2011 grew 6.2%, while fellow company MediaTek posted a sales drop of 23.5% on year. MStar saw its net profits slip 4.8% from a year earlier while net profits at MediaTek registered a larger 56% decline from 2010 levels.

MStar is looking to grab a larger share of the global TV chip market in 2012, said Liang, adding that it held a 55-56% share in 2011 with shipments reaching 128 million units. Though the worldwide flat-panel TV market for 2012 will enjoy a slower growth of less than 10%, the number of TV chip suppliers is expected to reduce allowing MStar to further maintain its leading position, Liang stated.

MStar disclosed that sales of TV chips accounted for 65-70% of company revenues in 2011, followed by handset products with 10-15%.

Handset chips played as the fast-growing product line for MStar in 2011, Liang noted. The company shipped a total of 50 million handset solutions in 2011, which should have boosted its 2G market share to 15%, according to Liang.

MStar is gearing up for mass production of its 3G solutions for smartphones in the second half of 2012, Liang said. With the China market set to enter its transition to 3G in 2012, MStar's handset chip business will continue to expand, Liang added.

In addition, MStar expects to receive increasing orders for set-top box (STB) chips in 2012, thanks to growing demand in emerging markets, according to Liang.