Taiwan-based Vanguard International Semiconductor Corp. (VIS) has a good market position and competitive technology providing foundry services. The company's stable performance with good yield and utilization over the next two years should generate stable operating cash flow to support higher capex needs and sustain a net cash position over the same period. VIS' product and client concentration with smaller operating scale, along with weaker pricing power and profitability than leading global peers' temper these strengths. The company's possible technology transition to 12-inch fabs will also bring some downside risks to VIS' stable performance over the longer term. We assigned our 'BBB-' long-term issuer credit rating to VIS. The stable rating outlook reflects our view that VIS' stable performance and cash
