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Networking IC design specialist Realtek Semiconductor has reported revenues increased nearly 5% sequentially to a record high of NT$11.15 billion (US$365.1 million) in the second quarter. The result also came within the company's guidance of 2-5% sequential growth.

Realtek posted June revenues of NT$3.62 billion. Revenues totaled NT$21.78 billion for the first half of 2018, rising 9.3% on year.

Market watchers expect Realtek to enjoy a seasonal pick-up in demand for PCs, gaming consoles and networking devices in the second half of 2018, as well as demand for Type-C products. Growing shipments of Wi-Fi and PON chips drove the company's revenue growth in June, according to the watchers.

Realtek has been enhancing the specs of its 802.11ac solutions which will also make a positive contribution to the company's gross margin performance in the second half of 2018, the watchers said.

In addition, Realtek will start shipping Ethernet chips for automotive applications by the end of 2018, the watchers indicated. Automotive Ethernet chips will play a new driver of the company's growth in 2019, the watchers said.

Realtek has reportedly obtained Ethernet chip orders from Europe-based car vendors and is also engaged in the design-in phase with China-based car manufacturers.