VIS March Revenue Up 27.1% YoY

Vanguard International Semiconductor Corporation (VIS) reported robust financial results for March 2025, with monthly revenue increasing by 16.4% and a year-over-year growth of 27.1%. For the first quarter, revenue rose 3.4% quarter-on-quarter, aligning well with market expectations.

According to institutional analysts, despite ongoing geopolitical uncertainties—particularly the fluctuating trade policies under former U.S. President Donald Trump—short-term stock prices may experience a technical rebound. However, the unresolved tariff tensions between China and the U.S. continue to cast a shadow over broader economic outlooks, prompting a neutral stance on the company's mid- to long-term prospects.

In Q1, VIS maintained a capacity utilization rate of approximately 70–75%, with growth momentum primarily driven by Display Driver ICs (DDIC). Wafer output for the quarter is estimated to have increased by 10–12%, while average selling prices (ASP) experienced a slight decline of 4–6%. The company also anticipates recognizing Long-Term Agreement (LTA) revenue, accounting for about 2% of total quarterly revenue.

Following the inventory correction at the end of 2024, customer demand gradually recovered. Increased shipments were supported by expanded stimulus measures in mainland China and proactive supply chain adjustments in response to tariff uncertainties. Inventory levels for consumer electronics (3C) remain healthy, while adjustments in the automotive and industrial segments are still ongoing but are expected to be completed in the first half of the year. Current order visibility stands at approximately three months.

VIS achieved a gross margin of around 29–31% in Q1, marking an increase of about 1 percentage point from the previous quarter, mainly due to improved capacity utilization. Operating expenses remained stable at roughly 12% of revenue, and earnings per share (EPS) for the quarter are estimated at NT$1.1.

Benefiting from global supply chain diversification trends, VIS continues to secure increased wafer orders previously produced in mainland China, particularly from U.S.-based companies. As a result, revenue contributions from major international and IDM companies are expected to grow, helping to mitigate fluctuations in demand from local IC design houses in Taiwan.

However, VIS also faces intensified competition from expanding 12-inch mature-node capacity in both China and the U.S. To navigate this landscape, the company aims to focus on high-value and differentiated products. Looking ahead to 2025, the global semiconductor industry is projected to experience moderate growth, with AI-related applications continuing to serve as the primary growth driver. VIS is expected to follow this trend with steady performance. The main variable remains U.S. trade policy, with the company's full-year EPS forecast at approximately NT$4.8.