MediaTek has reiterated its sales guidance for the second quarter of 2021, despite concerns about demand deceleration in India and China.

MediaTek, responding to speculation raised recently about China-based smartphone vendors revising downward their shipment projections this year, indicated there's no cutback in orders by customers.

MediaTek expects revenue to increase 10-18% sequentially to hit another record high in the second quarter.

Sources at Taiwan-based first-tier IC design houses said that customers' overbooking has boosted book-to-bill ratios at chip suppliers over the past six months. Delivery lead times at foundries are still as long as over six months, said the sources, adding that chip shortages may persist through 2022.

Handset vendors are making adjustments to their 2021 shipment projections, because of limited chip supply, the sources said.

According to sources at Taiwan's display driver IC specialists, the ongoing chip shortages do discourage handset companies from stepping up their pace of chip orders. However, there is no sign of handset customers in China and Taiwan cutting their shipment outlook this year thus far, the sources said.