MediaTek chairman Tsai Ming-kai expects an increase in demand for smartphone chips in the second half of this year, despite a slowing global economy.

Speaking at his company's annual meeting held in Hsinchu, Tsai said the global smartphone industry was expecting to enter a peak season from July onwards, driving sales growth for MediaTek.

In the first quarter of this year, chips used in mobile phones accounted for up to 55 percent of MediaTek's total sales, with China serving as a major buyer of the IC designer's products.

In 2011, faced with competition that was fiercer than ever before, MeditaTek posted US$454 million.

Tsai said the worst phase was almost over for MediaTek, and the company was gearing up to broaden its product portfolio and win orders to strengthen its profitability.

On the back of robust demand for smartphones, MediaTek has forecast smartphone-chip shipments in the second quarter to range between 18 million units and 20 million units, up sharply from the 10 million recorded in the first quarter.

For 2012, the IC designer anticipates smartphone-chip shipments to touch 75 million units due to rising demand from China and other emerging markets.