Vanguard International Semiconductor (VIS) is skeptical about the IC market in the coming year, mainly due to impacts in the US-China trade war. However, this may serve as a positive impact on their business outlook in 2019.
Negative macroeconomic factors within the US-China trade war are other factors that make VIS cautious about the growth of the market in 2019. However, their numbers are already looking positive and they are basing new production on these trajectories, according to the company’s chairman, Leuh Fang on Oct. 30 at an investors meeting.
VIS Expands Presence via New Facilities
Looking ahead in 2019, VIS’ capital expenditure will reach between NT$3.5 billion (US$113 million) and NT$3.6 billion, which is a huge jump from the capex this year (which turned out to be approximately NT$2.1 billion).
The majority of the rise in capex next year is due to the building of new facilities in Taoyuan, just north of Taiwan. In addition to the new cleanroom facilities at its Fab 3, VIS is also dipping into the online market and producing 25,000 to 30,000 eight inch wafers that will be available on the Internet.
Even though in September VIS experienced a power blackout that impacted one of its wafer fabs, the company is still in good shape and the incident urged the company to trim their finances for the third quarter of the year, which worked out in their favor.
Going into the fourth quarter, the company had great performance to its customers which resulted in a demand in wafers, thus impacting their numbers and giving them positive results.
In addition to positive performance reviews, VIS also noted that the foreign exchange transaction rates worked out in the company’s favor and helped their numbers.
As VIS heads into the fourth quarter, they are estimating that their revenues will be between NT$7.6 billion and NT$8 billion.
About Vanguard International Semiconductor (VIS):
VIS is a specialty IC foundry service provider, which was founded in 1994 in Taiwan. Their success over the years has made the company a leader in this industry, due to their advanced technology and excellent customer service.