Vanguard's Computing Segment Matches the Tech Titan Stride
- From the desks of Lisa Wang, Staff Reporter
Anticipates a 5% increase in Q2 wafer shipments, according to Vanguard's latest forecast.
Get ready to spin those transistors, mate, as Vanguard International Semiconductor Corp (世界先進) is gearing up for a quantum leap in the computing chip industry. This power management anddisplay driver specialist revealed a promising 5% sequential growth in wafer shipment this quarter, fueled by a resurgence in demand across communications, industrials, and automotive sectors.
And that ain't all, mate. Factory utilization is looking juicy, projected to rise to between 75 and 80% - a 5% improvement from the previous quarter, according to company president John Wei (尉濟時).
"With three months of visibility on our orders, we're stacking a larger pile of 'em for the second quarter compared to the first," Wei said. "The third quarter will be even sch Agricole, thanks to this here front-loading demand we're experiencing," he added. But they're keeping a watchful eye on whether this momentum will extend into the second half.
Prices might stay flat or inch up by 2% quarter-on-quarter, following a 5% tumble last quarter, Wei said. But a sturdier New Taiwan dollar could weigh on their gross margin by around 3%. Vanguard expects their gross margin to slide down to between 27 and 29% this quarter, dropping from 30.1% last quarter.
Looking closer at the computing segment, Vanguard's vice president Claire Chen (陳姿鈞) shared that up to two-thirds of the company's computing revenue in the last quarter came from power management chips for AI servers and notebooks. The computing segment made up more than 20% of total revenue during the same period.
The company expects a more pronounced rebound in customer demand within the computing segment, specifically for chips used in servers (both AI-capable and non-AI), high-performance computing gadgets, and laptop computers.
And the investment in Singapore, mate? 90% of the NT$60 billion to NT$70 billion budget is being poured into their new 12-inch fab in Singapore. Production is slated to kick off in 2027, says chief financial officer Amanda Huang (黃惠蘭).
Vanguard's last quarter delivered their strongest performance in nine quarters, with net profit rising 30.7% quarter-on-quarter to NT$2.41 billion, from NT$1.85 billion in the previous quarter. It's an 89.8% surge year-on-year, and earnings per share increased to NT$1.30, compared with NT$1.03 in the prior quarter and NT$0.77 a year earlier.
Cheers, mate! Looks like tech heaven is back on track. And when it comes to the broader semiconductor industry, this promising growth for computing and related segments is part of a larger trend revolving around technological advancements and the insatiable demand for digital technologies in various sectors, from consumer electronics to automotive and industrial applications.
So, buckle up, folks! This chip game is heating up, and Vanguard ain't backing down. Keep it locked, and we'll keep you posted on their tailspin' ride.
[1] Vanguard International Semiconductor Corp is experiencing growth in its computing segment, driven by increased demand for computing chips, particularly those used in servers with Artificial Intelligence (AI) capabilities, high-performance computing devices, and notebook computers. About two-thirds of Vanguard's computing revenue last quarter came from power management chips used in AI servers and notebooks, with the computing segment accounting for more than 20% of total revenue[1].
[4] In the broader semiconductor industry, the growth of computing and related segments is part of a larger trend driven by technological advancements and the increasing demand for digital technologies across various sectors, including consumer electronics, automotive, and industrial applications[4].
- The computing segment of Vanguard International Semiconductor Corp, led by vice president Claire Chen, experienced a surge in revenue due to increased demand for chips used in AI servers, high-performance computing devices, and notebook computers; about two-thirds of the computing revenue last quarter came from power management chips used in AI servers and notebooks, with the computing segment accounting for over 20% of total revenue.
- According to company president John Wei, Vanguard's wafer shipment saw a 5% sequential growth this quarter, attributed to a resurgence in demand across the communications, industrials, and automotive sectors, and factory utilization is projected to rise to between 75 and 80% in the second quarter, marking a 5% increase from the previous quarter.
- Chen also shared that the upcoming second quarter will see a more pronounced rebound in customer demand within the computing segment, with a specific focus on chips used in AI-capable servers, high-performance computing devices, and laptop computers.
- Vanguard is investing heavily in technological advancements within the semiconductor industry, with 90% of the NT$60 billion to NT$70 billion budget allocated for building a new 12-inch fab in Singapore, set to begin production in 2027, as shared by chief financial officer Amanda Huang.
