Vanguard cuts capital spending estimate

CHAIRMAN’S VIEW:The company expects this quarter’s revenue to drop between 9.6 and 14.5 percent and gross margin to dip slightly to between 27 and 30 percent

Taipei Times
Date:  Aug 05, 2015
By: Lisa Wang  /  Staff reporter

Vanguard International Semiconductor Corp (世界先進) — which makes controller chips for LCD panels — yesterday slashed its estimate for capital spending for this year by about 23 percent as its customers’ are curtailing inventory buildup.

Citing uncertainty about end-product sales and customers’ inventory corrections, Vanguard chairman and president Fang Leuh (方略) said the chipmaker “would defer part of our capital spending to next year.”

“We expect capital spending this year to decline to NT$1.7 billion [US$53.58 million], which is NT$500 million less than our previous quarter estimate,” Fang said.     [FULL  STORY]

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