Vanguard International Semiconductor Expects Bigger Losses
July 13, 1998 (TAIPEI) -- Vanguard International Semiconductor Corp. expects larger losses in 1998, as the oversupply of dynamic random access memory (DRAM) microchips persists in the global market.
The microchip producer plans a one-time downward adjustment in its profit projection, rather than the step-by-step reduction proposed earlier. It expects to report a total loss of NT$5 billion (US$145 million) for the full year.
Vanguard's reduction follows similar steps taken by many other DRAM manufacturers, including Powerchip Semiconductor Corp.
A Vanguard spokesman said the slump in the DRAM market resulted from excess production by most manufacturers.
Vanguard, a subsidiary of Taiwan Semiconductor Manufacturing Co., Ltd., has reportedly decided to delay a previous plan to expand production capacity. In addition, it intends to scale back capacity in the second half of this year.
Other major DRAM producers, including Powerchip and Acer Semiconductor Manufacturing Inc. (formerly TI-Acer), are said to be racking up monthly operating losses of NT$400 million to NT$500 million.
Sitron Precision Co., Ltd., the best performer among the dozen DRAM makers listed on the OTC market, saw sales drop by 26 percent in June, to NT$42 million.
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