VIS May Revenue NT$3.55B Declines YoY and MoM

Recently, Vanguard International Semiconductor Corporation (VIS), a leading wafer foundry, released its latest financial report revealing a consolidated revenue of NT$3.55 billion for May. This figure represents a 3.38% decrease compared to the previous month and a slight 0.56% decline year-over-year. The reduction is primarily influenced by cautious market sentiment amid ongoing U.S. tariff policies, which have introduced uncertainty in the semiconductor supply chain.

From January to May, VIS recorded a cumulative consolidated revenue of approximately NT$19.174 billion, marking a 15.57% increase compared to NT$16.592 billion during the same period last year.

Looking ahead to the second quarter, VIS's Chief Financial Officer and spokesperson, Huang Huilan, noted that tariff-related uncertainties have caused some customers to adopt a wait-and-see approach. However, this has also prompted other clients to accelerate their procurement schedules. As a result, wafer shipment volume is expected to grow quarterly by around 3% to 5%, with average selling prices projected to increase modestly by 0% to 2%. Gross margins are forecasted to remain stable between 27% and 29%. In addition, through negotiations with clients, the company anticipates recognizing additional long-term contract revenue accounting for about 1% of total operating income, aside from wafer sales.

VIS emphasized that the reciprocal tariff measures have created significant short-term market uncertainties. Some customers remain cautious about wafer demand due to concerns over potential economic slowdown, while others have advanced orders to mitigate tariff cost increases. Currently, order visibility stands at approximately three months. Capacity utilization is expected to rise by several percentage points in the second quarter, reaching around 75% to 80%, with further growth anticipated in the third quarter. The fourth quarter outlook remains to be seen.