Vanguard International Semiconductor Corp., a specialty foundry services provider in Taiwan, generated about new Taiwan dollar (NT$) 44 billion revenue and NT$15.7 billion EBITDA in 2024. We believe the technical support provided by TSMC to Vanguard's joint venture in Singapore and long-term contracts with key clients significantly lower execution and cash flow risk associated with the project. We expect Vanguard's debt leverage to peak in 2027 but gradually trend down thereafter, supported by stronger free operating cash flow from 2027, particularly from the joint venture. We therefore affirmed our 'BBB-' long-term issuer credit rating on Vanguard. The outlook remains stable to reflect our view that Vanguard's enhanced foundry services and lower execution risk can temper the negative impact of a
