Taiwan’s Vanguard International Semiconductor reported a record quarterly profit for 2023 while warning of weaker shipments ahead as seasonal demand cools.
The chipmaker posted NT$2.13 billion ($67 million) in third-quarter net income, up 18.6% from the previous quarter. Revenue rose 6.7% to NT$11.8 billion, marking an 11.8% increase from a year earlier.
President John Wei expects wafer shipments to decline 10-12% in the fourth quarter as customers adjust inventories before year-end. The company plans to offset some of the impact through price hikes of 3-5% and additional revenue from long-term contracts.
The Taiwanese semiconductor manufacturer anticipates gross margins between 27-29% for the current quarter. Year-to-date net income reached NT$5.2 billion through September, showing a 4.36% gain compared to the same period in 2022.
The results reflect ongoing volatility in the semiconductor industry as manufacturers navigate shifting demand patterns and pricing pressures. World Advanced’s ability to maintain profitability will depend heavily on successful execution of its pricing strategy amid the projected volume decline.
