Taiwan-based handset component suppliers remain optimistic about demand in the third quarter although international handset vendors have given mixed outlooks for the period.

While Nokia is upbeat about its handset shipments in the third quarter, Sony Ericsson and LG Electronics (LGE) are conservative about their shipments growth.

While LGE's second-quarter handset shipments grew less than expected, and the vendor predicts a sequential decline for the third quarter, Taiwan's handset component makers are not worried by the Korea company's weak outlook, the sources said.

The sources said LGE accounts for a low proportion in Taiwan component suppliers' sales, as orders from the Korean client rarely come on a regular basis.

Handset keypad suppliers Ichia Technologies and Silitech Technology are still optimistic about global handset shipments in the third quarter, the sources said. Clients who are shipping new models in the third quarter have been actively placing orders, and demand is better than that in the first half of the year, the sources said.

Merry Electronics, a supplier of handset-use acoustic solutions, has not felt any impact from handset vendors' conservative outlook, the sources noted. Merry has instead seen orders picking up significantly, and according to its internal estimates, consolidated sales for the third quarter will grow more than 20% sequentially, the sources said.