...November 10, 2023 TAIPEI (S&P Global Ratings) Nov. 10, 2023--Intense competition will strain utilization and profitability for Vanguard International Semiconductor Corp. A prolonged downturn in demand for the power management integrated circuits (IC) sector could add to the pressure facing the Taiwan-based chipmaker (###-Stable/--), given Vanguard's heavy revenue concentration on this sector. Clients for Vanguard's industrial and auto applications have started to adjust their orders in response to weaker demand and piling inventory levels. These late adjustments (relative to most other downstream applications) could continue for a few quarters and delay a recovery in Vanguard's performance in 2023 and 2024. Power management IC accounted for 63% of the company's revenue in the third quarter of 2023. Meanwhile, inventory correction for most consumer electronics such as televisions, personal computers, and smartphones has come to an end. This could offer some additional shipments for Vanguard's...
