This report does not constitute a rating action. Overview Key strengths Key risks Solid track record providing specialty 8-inch foundry services, with a good market position in power management and display driver integrated circuits (IC). Intense competition in the mature nodes sector, mainly due to persistent overcapacity. Good technology capabilities underpin stable market share and client relationships through business cycles. Lack of experience operating a 12-inch foundry. Technology support from TSMC and a joint venture structure alleviate execution risk for its 12-inch fab project. Debt leverage could materially rise in 2025-2026, due to significant capital expenditure (capex). Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) is Vanguard International Semiconductor Corp.'s largest shareholder and will provide its proven process technology and technical assistance
