Handset solution vendors MediaTek, MStar Semiconductor and Spreadtrum Communications all still maintain their guidance for a 5-10% growth in revenues for the third quarter of 2011 thanks to demand from China and other emerging markets.

Additionally, short lead-time orders from clients in China showed a significant growth recently, with the trend likely to continue in the fourth quarter, according industry sources.

Demand for 2.5G handset chipset solutions has been growing steadily in 2011, without being affected by inventory adjustments carried out by companies in most segments of the IT industry, the sources indicated.

Spreadtrum is expanding its share in the 2.5G solution segment in China, with its new solutions, the SC6610, 6620 and 6800, all to enter volume production in the third quarter, noted the sources.

MStar has begun shipping its new 8536N 2.5G solutions to China, targeting the mid-range and entry-level segments and is expected to see its shipments of handset solutions grow 30-50% in the third quarter, the sources estimated.