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Testing demand for 5G chips driving up Sigurd, Sporton revenues

Robust testing demand for 5G chips has started buoying revenues at related suppliers including Sigurd Microelectronics and Sporton International.

Sigurd, a veteran backend testing partner for MediaTek's chips, saw its February revenues surge 30.3% on year to NT$1.11 billion (US$39.64 million) despite fewer work days during Lunar New Year.

The impressive revenue increases mainly resulted from a significant ramp-up in testing demand for 5G handset chips, networking chips, power management ICs, cryptomining chips and game console chips, allowing Sigurd's testing capacity to sustain high utilization, according to industry sources.

Sporton, engaged in IC testing and certification labs, has reported its February revenues expanded 42.51% on year to a record monthly high of NT$335 million, with the growth mainly driven by rapid increases in 5G NR testing and certification orders from clients in China and the US, the sources said, adding that such orders entail higher unit prices.

Sporton has managed to sustain double-digit on-year revenue expansions for 11 consecutive months since April 2020, thanks to increasingly strong IC testing and certification demand for CPE (customer premise equipment) and notebooks, in addition to handsets and small cells, the sources added.