February 27, 2025 /SemiMedia/ — Vanguard International Semiconductor Corporation (VIS) reported in its February 25 earnings call that wafer shipments are expected to rise by 8% to 10% in Q1 2025, driven by a recovery in customer inventory levels and supply chain pull-ins due to tariff uncertainties. However, the average selling price (ASP) is expected to decline by 4% to 6%, with gross margin forecasted to be between 29% and 31%.

For Q4 2024, VIS reported revenue of NT$11.553 billion, a 2.1% decline from Q3. Net profit attributable to shareholders was NT$1.847 billion, with earnings per share of NT$1.03. Due to seasonal demand slowdowns and year-end inventory adjustments, wafer shipments decreased by approximately 10% quarter-over-quarter, though ASP increased by 4%. Gross margin slightly dropped by 0.3 percentage points to 28.7%. Overall, performance was in line with expectations for Q3.

Looking ahead to Q1 2025, VIS expects wafer demand to pick up following inventory recovery. Additionally, China's continued consumption stimulus and supply chain pull-ins due to tariff uncertainties are expected to drive wafer shipment growth. Gross margin is projected to range between 29% and 31%.

For capital expenditures, VIS forecasts a total of NT$60-70 billion in 2025, with over 90% allocated to the expansion of its 12-inch wafer fab in Singapore (VSMC). The fab’s utilization rate was 65% in Q4 2024 and is expected to reach 70%-75% in Q1 2025. Order visibility remains at three months.

VIS Chairman Fang Lue also stated that while U.S. government policies may impact inflation and the economy, the semiconductor industry’s overall inventory has recovered, and the automotive sector is steadily improving. Fang emphasized that the company will continue its planned investment in 12-inch wafer production, with the VSMC fab in Singapore ahead of schedule. The fab is expected to begin partial production in the second half of 2026 and reach full-scale production by 2027.

Additionally, VIS stated that the capital expenditure for VSMC’s 12-inch fab is expected to rise to NT$6.74 billion, up from the previous estimate of NT$5 billion, reflecting increased spending on technology licensing.