Vanguard International Semiconductor (VIS) reported consolidated revenue of NT$4.01 billion (approx. US$127 million) in January 2026, reflecting a decline in wafer shipments. The figure was down 18.6% from December 2025, when revenue totaled NT$4.93 billion, but up 18.4% from a year earlier, underscoring uneven but improving demand conditions.
Looking ahead to the first quarter of 2026, the company said it expects customer demand to stabilize following year-end inventory adjustments. Assuming an average exchange rate of NT$31.3 to the US dollar, wafer shipments are projected to rise 1 to 3% quarter over quarter. Average selling prices are expected to decline 3 to 5%, while gross margin is forecast at 28 to 30%.
Order visibility remains at roughly three months, and capacity utilization is expected to improve from about 75% in the fourth quarter of 2025 to 80 to 85% in the current quarter, signaling a modest recovery in operating momentum.
The company acknowledged that average selling prices are likely to soften in the first quarter, largely due to changes in product mix. Demand for display driver integrated circuits has weakened in the near term, while adjustments to certain power management products have also weighed on pricing. In addition, some long-term agreements signed beginning in 2021 are set to expire in 2026, creating short-term price pressure. VIS said the full-year impact on pricing should remain limited to the low single-digit percentage range, adding that prices are expected to remain stable over the medium to long term, with room for gradual improvement.
VIS will continue upgrading and replacing its 8-inch wafer production lines in 2026. Full-year 8-inch wafer capacity is projected at approximately 3.31 million wafers, down about 4% from the previous year. First-quarter monthly capacity is expected to decline to around 266,000 wafers, a sequential drop of about 9%, reflecting scheduled maintenance and product mix adjustments.
Capital expenditures totaled roughly NT$64 billion in 2025, and spending in 2026 is expected to remain elevated at NT$60 billion to NT$70 billion. In addition to upgrading portions of its existing 8-inch capacity, the company will continue investing in 12-inch wafer equipment. About 85% of planned capital spending will be allocated to construction and equipment at VSMC's Singapore facility, with the remaining 15% directed toward routine maintenance, capacity enhancements, and equipment optimization at its 8-inch fabs.
For the full year 2025, VIS reported revenue of NT$48.59 billion, an increase of 10.3% from the previous year. Net profit rose 12.2% to NT$7.91 billion, while earnings per share reached NT$4.30, slightly higher than NT$4.21 in 2024. Gross margin edged up to 28.1%, from 27.9% a year earlier.
Article edited by Jack Wu
