June 29, 2026 /SemiMedia/ — Vanguard International Semiconductor Chairman Leuh Fang said 8-inch foundry capacity remains undersupplied this year, with order visibility of about three to five months.

Fang said demand across the supply chain remains strong in the second half of the year and the company expects steady growth. He added that near-term capacity remains tight as demand tied to AI-related applications continues to develop.

VIS currently derives nearly a double-digit share of revenue from AI-related applications, and the company expects that share to continue rising this year.

Fang said AI development is increasing demand for low-power, high-efficiency and highly integrated system chips, supporting stronger demand for mature-node semiconductors. VIS remains focused on mature process applications, especially power management ICs and industrial analog chips.

He said some duplicate ordering may exist in the market, and the company will manage that carefully. However, customer demand appears to be relatively long-lasting, with current order visibility around three to five months.

For the second half of the year, Fang said that unless there is a major external change, supply chain demand appears very strong. Under current conditions, VIS expects stable growth.

On pricing, Fang said rising electricity, water, labor and other costs remain factors under discussion with customers. The company has no fixed price adjustment schedule and will make decisions based on economic conditions, industry changes and customer affordability.

He also warned that inflation could bring volatility to financial markets. If interest rates rise, capital flows and demand could be affected. Fang described this as a distant risk under otherwise favorable industry conditions, adding that war and inflation trends need continued monitoring.

VIS is also making progress in third-generation semiconductor technology, particularly gallium nitride. Fang said the company’s 650V QST technology has crossed an important threshold, while GaN products below 200V have already started shipping for smart power system applications. He expects clearer growth momentum next year.

The company also said it will distribute bonuses of NT$10,000 to NT$35,000 to more than 6,000 front-line employees, with a total amount exceeding NT$100 million.