TSMC's affiliate, Vanguard International Semiconductor (VIS), announced its third-quarter results, reporting net revenue of NT$12.349 billion (about US$413 million), up 4.6 percent year on year. According to Commercial Times, this marked a record high for the same period in the company's history. However, the appreciation of the New Taiwan dollar and rising costs drove net profit after tax down to NT$1.703 billion, a decline of 16.6 percent quarter on quarter and 20 percent year on year, with earnings per share (EPS) at NT$0.91 -- the lowest in six quarters.
Q4 Outlook: Inventory Stabilization and AI Opportunities
Looking ahead to the fourth quarter, the report, citing Chairman and CSO Leuh Fang, noted that most customers have been actively managing their inventories this year, and inventory adjustments are expected to stabilize in the fourth quarter, or possibly even earlier.
VIS expects wafer shipments for the fourth quarter to decline slightly by 6 to 8 percent due to seasonal demand slowdown. However, as the report highlights, low-price competition has largely disappeared, allowing the company's average selling price (ASP) to rise by 4 to 6 percent. Gross margin is projected to remain solid at 26.5 to 28.5 percent, keeping revenue at a high level.
As further noted by the report, Leuh Fang stated that with its strong expertise in power management applications, VIS holds an advantage in AI server and data center markets and expects steady growth by 2026, supported by rising related demand.
VIS Maintains Steady Capex Outlook, Accelerates Move Into SiC and GaN
In terms of order visibility, the report indicates that President John Wei said demand for power management ICs in automotive and industrial control applications remains strong, keeping overall order visibility at about three months.
Meanwhile, VIS's capital expenditure for 2025 is expected to remain steady at around NT$65 to NT$70 billion, with 90 percent allocated to the construction and equipment purchases for its Singapore facility.
The report also notes that VIS is actively expanding into compound semiconductors. Its SiC pilot line is on track and slated to begin trial production at the 8-inch fab in the first half of 2026, while GaN products are already in stable mass production and poised to drive the company's medium- to long-term growth.