The semiconductor sector has seen tight supply, but silicon wafer suppliers have been much less eager to expand capacity than foundries. Notebook ODMs, long troubled by components shortages, expect little shipment growth in the third quarter despite robust orders from clients. Strong demand and tight supply sent LCD panel maker AUO's operating profit to a 13-year high in the second quarter of 2021.

Silicon wafer suppliers expanding capacity slowly: Capacity expansions at silicon wafer suppliers are proceeding at a pace that may not be able to keep up with foundries' aggressive capacity expansion plans, according to market sources.

Notebook ODMs see constrained shipment growth, but rising revenues in 3Q21: Notebook ODMs expect to post only flat or slight sequential shipment growth in the third quarter, despite brisk orders from customers, but the makers' revenues are expected to improve in the quarter.

AUO 2Q21 operating profit hits 13-year high: TFT-LCD panel maker AU Optronics (AUO) has reported operating profit of NT$20.285 billion (US$726 million) for second-quarter 2021, the highest quarterly level since third-quarter 2008.