Vanguard International Semiconductor Corp (世界先進), a foundry service provider specializing in producing power management and display driver chips, yesterday withdrew its full-year revenue projection of moderate growth for this year, as escalating US tariff tensions raised uncertainty and concern about a potential economic recession.
The Hsinchu-based chipmaker in February said revenues this year would grow mildly from last year based on improving supply chain inventory levels and market demand. At the time, it also anticipated gradual quarter revenue growth.
However, the US’ sweeping tariff policy has upended the industry’s supply chains and weakened economic prospects for the world economy, it said.
Photo: CNA
“Now with the tariffs in play, all those forecast should be put behind,” Vanguard chairman Fang Leuh (方略) told reporters in Taipei yesterday. “Before the tariff war ends, it will be very difficult to make a forecast about the global economy and the global semiconductor industry. The short-term impact will be negative.”
Despite the new US tariffs, Vanguard International Semiconductor Corp said the direct impact on its operations would be minimal, as only about 1 percent of its total chip production is shipped to the US.
Given the unpredictability of US President Donald Trump’s tariff policies, the company would take a wait-and-see approach, Fang said.
Trump initially paused the implementation of the “reciprocal” tariffs for 90 days before they took effect. However, he later raised tariffs on Chinese imports to 125 percent — and then again to 145 percent — in response to Beijing’s retaliatory measures.
Fang said Vanguard would continue with its expansion in Singapore, including construction of a new 12-inch wafer fabrication plant in collaboration with NXP Semiconductors NV. The new facility is scheduled to begin volume production in 2027.
However, the company has no plans to build a new manufacturing facility in the US, citing its focus on mature process technologies and its relatively smaller scale of operations, Fang added.
Overall, Vanguard could slightly benefit from the tariff war as some Chinese chip designers are seeking non-China chipmakers to supply their customers in the US and Europe, Fang said, adding that the company has already received rushed orders for that purpose.
However, the company would not proactively compete with Chinese chipmakers in China’s cut-throat market, where overcapacity has caused a stiff price war, he added.
Vanguard posted 24 percent annual growth in revenue for the first quarter of this year, amounting to NT$11.95 billion (US$365.39 million) attributable to wafer shipment growth. On a sequential basis, revenue expanded 3 percent.
The company attributed the growth to a pickup in demand for TV and smartphone chips after Beijing launched economic stimulus packages.
TARIFFS: The global ‘panic atmosphere remains strong,’ and foreign investors have continued to sell their holdings since the start of the year, the Ministry of Finance said The government yesterday authorized the activation of its NT$500 billion (US$15.15 billion) National Stabilization Fund (NSF) to prop up the local stock market after two days of sharp falls in reaction to US President Donald Trump’s new import tariffs. The Ministry of Finance said in a statement after the market close that the steering committee of the fund had been given the go-ahead to intervene in the market to bolster Taiwanese shares in a time of crisis. The fund has been authorized to use its assets “to carry out market stabilization tasks as appropriate to maintain the stability of Taiwan’s
STEEP DECLINE: Yesterday’s drop was the third-steepest in its history, the steepest being Monday’s drop in the wake of the tariff announcement on Wednesday last week Taiwanese stocks continued their heavy sell-off yesterday, as concerns over US tariffs and unwinding of leveraged bets weighed on the market. The benchmark TAIEX plunged 1,068.19 points, or 5.79 percent, to 17,391.76, notching the biggest drop among Asian peers as it hit a 15-month low. The decline came even after the government on late Tuesday authorized the NT$500 billion (US$15.2 billion) National Stabilization Fund (國安基金) to step in to buoy the market amid investors’ worries over tariffs imposed by US President Donald Trump. Yesterday’s decline was the third-steepest in its history, trailing only the declines of 2,065.87 points on Monday and
TARIFF CONCERNS: The chipmaker cited global uncertainty from US tariffs and a weakening economic outlook, but said its Singapore expansion remains on track Vanguard International Semiconductor Corp (世界先進), a foundry service provider specializing in producing power management and display driver chips, yesterday withdrew its full-year revenue projection of moderate growth for this year, as escalating US tariff tensions raised uncertainty and concern about a potential economic recession. The Hsinchu-based chipmaker in February said revenues this year would grow mildly from last year based on improving supply chain inventory levels and market demand. At the time, it also anticipated gradual quarter revenue growth. However, the US’ sweeping tariff policy has upended the industry’s supply chains and weakened economic prospects for the world economy, it said. “Now
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
RSS