Vanguard International Semiconductor Corp.

Overview Key strengths Key risks Good technology capability providing 8-inch foundry services with a leading position in some products. Smaller operating scale and less-diversified product and client portfolios compared with that of its global leading foundry peers. Strong commitment from Vanguard's client will lower the downside risk when market conditions weaken. Competition for mature technology nodes could be intense under normal business cycles. Sustainable cash flow generation and low financial leverage. Business volatility to arise from possible technology transitions to more advanced nodes over the long term. The weakening global economy will likely weaken the current strong demand for Vanguard International Semiconductor Corp.'s major products from the second half of 2022. These products include large panel display driver ICs and

...Likely demand slowdown will constrain further improvement in Vanguard's strong performance from late 2022. The weakening global economy will likely weaken the current strong demand for Vanguard International Semiconductor Corp.'s major products from the second half of 2022. These products include large panel display driver ICs and power management ICs, particularly for applications in consumer electronics that experience cyclical demand changes. S&P Global Ratings has revised down its forecast for global IT spending to 5.1% in 2022 from 6.3% previously. This is still better than the global GDP outlook for 2022 and reflects the rating...

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