Taipei, Nov. 16, 2012 (CENS)--Vanguard International Semiconductor Inc.’s (VIS’s) sales revenue for October hit 12-year high of NT$1.8 billion (US$62 million at US$1:NT$29) mostly thanks to surged foundry contracts from suppliers of chips for Apple products.

Industry executives pointed out that Apple asked fabless chipmakers Dialog and irrusLogic, which supply iPhone5 with power management ICs and audio ICs, to farm out contract production of the chips to VIS while maintaining the major production at Taiwan Semiconductor Manufacturing Co. (TSMC). TSMC is currently the world’s No.1 silicon foundry supplier holding a major stake in VIS.

The October result helped swell VIS’s revenue for the first 10 months this year to NT$14.2 billion (US$490 million), up 10% year on year.

VIS said at a recent institutional conference that contracts for its sub-0.18nm process capacities will increase after the first quarter of 2013 and its operation will return to growth path in the following quarter. Power management IC and audio ICs, the company added, will be the primary growth drivers.

The company’s revenue from sales of 0.18nm process foundry service surged to 43% of its total in the third quarter from 33% in the second quarter. The company estimated the percentage to increase by 6-7 percentage points in the fourth quarter.

The company optimistically estimated its wafer shipments for the fourth quarter to marginally slip or stay on par with that of the third quarter and its average selling price (ASP) to decline 1-3% sequentially this quarter.

Citing the forecasts, industry executives estimated the company’s revenue for this quarter to decrease 1-5% from the previous quarter, which is strong as compared with the average double-digit decline pace the company had in the fourth quarter over past years.

Based on the company’s forecast, the company will have revenue of NT$4.5-4.66 billion (US$155-160 million) in the fourth quarter, compared with NT$4.7 billion (US$162 million) it had in the third quarter.

(by Ken Liu)