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VISC Ends Memory Foundry to Focus on Logic IC Contracts

2010/07/06
Taipei, July 6, 2010 (CENS)--Impressed by the excessive demand in the logic-chip market, Vanguard International Semiconductor Corp. (VISC) will be completely dedicated to making built-to-order logic chips beginning the third quarter of the year after delivering its last batch of contract memory chips late in the second quarter.

Beginning July, the company`s two 200-mm wafer fabs will be completely loaded with contracts for logic chips like power management ICs and CMOS sensor ICs.

Industry executives estimated the company`s monthly output at an average of 112,000 wafers throughout the third quarter, increasing around 7% from 105,000 wafers in the first quarter of this year.

Institutional investors estimated burgeoning demands for foundry service by LCD drive ICs and analog ICs since May this year to help increase VISC`s revenue for the second quarter by 15-20% from a quarter earlier, outperforming expectations.

Persisting strong demands are estimated to further boost the company`s shipments of silicon wafers by 5-10% for the third quarter after an 11-12% gain in the second quarter, likely hiking the company`s revenue for the third quarter by 8% from a quarter earlier and bringing up its capacity utilization rate to 90%.

Institutional investors project the company`s earnings for this year at NT$0.9-0.95 range per share in light of brisk market.

Logic-chip suppliers have migrated to 0.11-micron process on 200-mm wafers from 0.18-micron node on 150-mm wafers, also accounting for the deluge of orders to VISC.

(by Ken Liu)
 
 
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